Now the dust has settled after the incredible events of the past week, the full scale of the wreckage that is our economic landscape is beginning to become clear. Compared with the
horrendous exchequer returns which revealed we will have to borrow almost €11.5bn to balance the books at the end of the year, the little matter of preventing a run on the banks and our entire credit system entering an
economic nuclear winter almost seems small change.

The two fiscal emergencies are of course totally connected, revealing in all their tawdry glory how in this small country of ours, politics, banking and the interests of debt-ridden developers are so closely and inextricably linked. To allow even part of one element to fall risks bringing down the whole house of cards.

Taxpayers, quite rightly, are angry that the bonus-driven risk-taking of the banks had so undermined their credit-worthiness that they could no longer borrow on international interbank markets. That credit-worthiness now has to be underwritten by what the Taoiseach Brian Cowen referred to as "the good name" of this country.

The figures for lending to developers are as eye-popping as the current exchequer black hole. They have borrowed some €112bn. Those debts are not covered by the new state guarantee scheme – but any money needed by the banks to allow them to continue in business should any of this debt turn toxic will be. How much will turn bad is anybody's guess but using the Rumsfeldian "known unknowns" rule of thumb, economists reckon it could be anything between €6bn and €15bn – as big as this year's exchequer deficit.

Both Brian Cowen and Brian Lenihan have promised the regulations being drafted will be tough – up to €2bn in charges for the banks new 'guaranteed by Ireland Inc' status. There can be no element of trust – the letter touting for business from Irish Nationwide's Michael Fingleton jnr after the taoiseach expressly forbade it is an example of how blatantly willing the banks may be to use their new credit-worthiness as a calling card.

The salaries of the banks' chief executives are obscene and there is a case for them all to resign, though politicians are hardly in a position to argue for heads on a plate when they never offer up their own. But regulations that prevent the linkage of bonus schemes to dodgy banking decisions that generate short-term profit at great risk are as necessary here as in the United States where they are framed in the $700bn bail-out.

Brian Lenihan and Brian Cowen deserve the praise they are getting for their quickfooted action last week. Politically they have looked decisive and capable, as well as willing to take on the bureaucrats of Europe and the establishment in Britain in order to save us all. But if their reputation is solid among the stockbroking and banking and business classes, the lustre of the banking bail-out will wear very thin after the budget if there is a whiff of inequity when the slashing starts.

When the scale of the cuts becomes apparent within our shrinking economy – when extra taxes are added up, more jobs are lost, social welfare pruned, public services cut and major projects postponed – if this opportun­ity is not taken to cut the strutting arrogance of the banking fraternity down to size, then the great banking bail-out will be used as a stick to beat a government who were able to look after their multimillionaire friends in finance and construction but turned their back on the sick and the poor.

That's the price you have to pay for saving the country.