Madam, - Just how bad is the world financial crisis? What the US government is doing with its banking system is the equivalent of the Vatican distributing condoms. It is, I fear, a time to be nervous. - Yours, etc,
PADRAIC NEARY, Tubbercurry, Co Sligo.
Madam, - A reasonable estimate - based on population, family sizes, and home-ownership ratios — suggests there are fewer than 75 million mortgages in the US. Let's assume, conservatively, half of them are "sub prime" and that 80 per cent of those are in trouble.
That means about 30 million mortgages in trouble. Further assume that sub-prime mortgages average about $300,000 and it seems the total amount in danger of not being paid back is about $9 billion - assuming the houses, on which the mortgages are based, are worthless.
Why are governments all over the world doling out hundreds of billions to various financial institutions when $9 billion given directly to the troubled home owners would have eliminated the sub prime crisis which supposedly caused all this in the first place? - Yours, etc,
PETER O'ROURKE, Fernwalk, Ballincollig, Co Cork.
Madam, - Paul Gillespie (World View, September 20th) quotes Gore Vidal's remark about "free enterprise for the poor and socialism for the rich" in relation to the US economy. Socialism for big business and large farmers has always existed in this State with the assistance of the political parties, particularly Fianna Fáil and the PDs. - Yours, etc,
LIAM McGRATH, Leixlip, Co Kildare.