But to guarantee corporate deposits and debt is a bailout of the bank management and the shareholders and the creditors.
The proper course of action is to take over the bank as it fails: dismiss the management, appoint an administrator, guarantee the deposits and wipe out the shareholders (likely) and creditors (less likely).
But you can't do that when the management have political connections and the government thinks it needs to keep those creditors happy to preserve the Foreign Direct Investment. In fact, as soon as any crisis action is taken mobile capital will flee regardless. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
But to guarantee corporate deposits and debt is a bailout of the bank management and the shareholders and the creditors
Oh no no no. That's just to keep the wheels of business turning and jobs and tax bases etc... we're all in this together.... you don't sack people in public sector Ireland, you promote them and give them guaranteed pensions...
Its all a matter of confidence...if we could just convince people that property values will soon return to their previous levels or something close to that all of this ill go away.... <sound of banker crying into his Vichyssoise> Vote McCain for war without gain
