The brightness that was before

The Taoiseach today told the Dáil that the Government is:

Considering all options on Irish banks
Wants to minimise the exposure of the taxpayer.
Has received a report from PricewaterhouseCoopers.

The report said:

The 6 banks covered by the State guarantee scheme had more capital than required by the regulator on September 30 when the scheme was announced.
The banks will have enough capital until 2011.

What does this mean? The Taoiseach trenchantly reaffirmed in the Dáil that he is unsure. But he is sure of the following:

The banks’ capital is diminished.
Irish banks need a lot of capital.
If they don’t get it, they will have to reduce their loan books.
Unless the banks’ loan books are big the economy will be crushed.
Businesses will be starved.
And Ireland shall become heaps,
A dwellingplace for dragons,
An astonishment,
And a hissing
Without an inhabitant.

Recapitalisation is not a panacea, said Mr Cowen, though he conceeded that the brightness that was before is now a thick cloud.

Fine Gael leader Enda Kenny launched a blistering attack on Moloch, the near eastern deity that requires costly sacrifices:

‘Moloch whose mind is pure machinery,’ said Mr Kenny. ‘Moloch whose love is endless oil and stone. Moloch whose soul is electricity and banks. Moloch in whom we sit lonely.’

In response to this unprecedented criticism Mr Cowen could only say ‘international market expectations in relation to capital levels in the banking sector have altered and meeting these expectations may be challenging.’