The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
There also seems to be a value dissonance. I like my regional public bank and my regional/local saving bank. I think the are a valuable part of the German banking system and should be defended against the ravaging neoliberalism.
Well, yeah. If there's enough money to go around to keep banks from losing their shirts, then local banks and state-owned banks should be at the front of the queue.
But the fact is that if a bank becomes insolvent, there are established procedures to resolve that situation without any major loss for the real economy. The bank's management is decapitated, the assets sold off, and its shareholders and unsecured creditors get to take a haircut. But the economic function - credit analysis, information gathering, transaction clearing and money creation - will still be carried on during and after a bankruptcy.
When a manufacturing firm goes bankrupt, on the other hand, there is a significant risk that it is going to be disassembled and sold as scrap. Which destroys its economic function. And when a pension fund is insolvent, retirees get shafted. So all in all, if you have to shaft someone it's better for everyone, except the shareholders and management, that you shaft a bank than a manufacturing firm.
And the proportion of banks that are simply evil is arguably higher than the proportion of manufacturing firms that are simply evil.
And you do discriminate against other Europeans
Yes, because foreigners have another safety net.
In the best of all possible worlds, the EU would come together and make a list of firms and individuals who needed to be bailed out for the common good, and another list of firms and individuals who need to go whistle for their money. And then the EU would, collectively, bail out the people who needed to be bailed out.
In the world we actually have, the EU is not going to bail out the Irish retirees. And while the German government might bail out German retirees, it isn't going to bail out Irish retirees. So shafting the foreigners in preference to the Irish is the only way the Irish government can incentivise other governments to lend material support to a rescue operation that could ensure that nobody had to be shafted (except the hedge funds).
Friends come and go. Enemies accumulate.
by Luis de Sousa - Nov 22 10 comments
by Frank Schnittger - Nov 19 48 comments
by Oui - Nov 20 8 comments
by gmoke - Nov 21 4 comments
by Frank Schnittger - Nov 7 89 comments
by Frank Schnittger - Oct 25 20 comments
by Cat - Nov 3 20 comments
by gmoke - Oct 31 5 comments
by Luis de Sousa - Nov 2210 comments
by gmoke - Nov 214 comments
by Oui - Nov 208 comments
by Frank Schnittger - Nov 1948 comments
by Oui - Nov 161 comment
by Oui - Nov 162 comments
by Oui - Nov 89 comments
by Frank Schnittger - Nov 789 comments
by gmoke - Nov 6
by Cat - Nov 320 comments
by gmoke - Oct 315 comments
by Frank Schnittger - Oct 2817 comments
by Frank Schnittger - Oct 2520 comments
by Cat - Oct 2127 comments
by Frank Schnittger - Oct 1779 comments