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120 bn total exposure is not the same as 120 bn exposure to government debt.

Why yes, yes it is, since Ireland took leave of its senses and bailed out their own banks, that's precisely what it is. Unless you are in the minority that believes that Ireland has a single solvent bank left with overseas liabilities. In which case I have a "competitiveness" reform to sell you.

It's this bailout that the "Irish rescue" - at usurious 5.7 % interest - is now trying to prevent from collapsing (as it should by any right).

- Jake

Austerity can only be implemented in the shadow of a concentration camp.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Feb 6th, 2011 at 06:40:05 PM EST
[ Parent ]
Which is the best argument around that events are being driven by the very short-sighted German domestic political concerns of Angela Merkel and not by economic understanding or financial prudence of any sort. Given the situation and given the extraordinary willingness of the Irish government to attempt to swallow the whale of debt they have assumed, one would think that the governments whose banks are counter-parties to Irish debt would be more than happy to make loans available at zero percent and see how much of the whale Ireland could swallow. But no! They want to make 5.7% interest on the loan! They may as well drop a 20 megaton bomb on Dublin for all the good this will do in helping Ireland to attempt the impossible.  

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Feb 6th, 2011 at 10:44:40 PM EST
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