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C'mon mig, we need more analysis here.  Cowen sold this as being almost risk free and that Ireland was merely lending the banks its "good name" and would extract a commercial charge for the service.  Given all the "good names" which have disappeared in recent times in the banking/insurance sectors, that is not a very reassuring position to be in.

Is there some implicit underwriting to the effect that the EU/Eurozone wouldn't let Ireland go bust?  I could see this as becoming a very serious and central issue for the EU - perhaps requiring another Treaty - or a revamp of Lisbon to address.  When was the last time a nation defaulted on its sovereign debt - Germany/ Argentina/ (African countries?)

It seems to me we are redefining the role of the state here - into something that is neither free market capitalist nor socialist  - and which has the potential to do great harm - but also perhaps some good if managed correctly.  

Whatever the logic, we have to look at the consequences - and ET should be able to get there ahead of the MSM.

Vote McCain for war without gain

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Oct 3rd, 2008 at 08:36:22 AM EST
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