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).
Austerity can only be implemented in the shadow of a concentration camp.
by Frank Schnittger - Jul 30 26 comments
by Migeru - Jul 24 4 comments
by gmoke - Jul 27 1 comment
by Oui - Jul 28 4 comments
by Frank Schnittger - Jul 25 14 comments
by Frank Schnittger - Jul 26 216 comments
by afew - Jul 21 17 comments
by gmoke - Jul 21 6 comments
by Frank Schnittger - Jul 3026 comments
by Oui - Jul 284 comments
by gmoke - Jul 271 comment
by Oui - Jul 261 comment
by Frank Schnittger - Jul 26216 comments
by Oui - Jul 255 comments
by Frank Schnittger - Jul 2514 comments
by Oui - Jul 242 comments
by Migeru - Jul 244 comments
by Migeru - Jul 2464 comments
by Oui - Jul 237 comments
by gmoke - Jul 216 comments
by afew - Jul 2117 comments
by Oui - Jul 194 comments
by Frank Schnittger - Jul 1661 comments
by Oui - Jul 623 comments
by Oui - Jul 41 comment