Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
No, but that's because, at this stage, the government (and all serious opinion) truly believe that bailing out the banks is essential for even the marginalised. The government is entirely bought into the Dublin consensus and "free-market" fictions. I mean, these are guys who lived through previous Irish recessions and think the banks are going to lend to "creditworthy" people during one. The Irish banks have long been famous for only wanting to lend money to people who didn't need it. There are no creditworthy businesses during a recession this deep, especially when the government is intent on deepening it by taking money out of the pockets of people who will spend it in order to put it in the pockets of people who are going to use it to pay down debt, much of it foreign.

Crazy, and most of the opposition is too close to that position for a new government to make much difference. It would be slightly better, because at least they'd be free from continuing precise policies, but it wouldn't be much better.

by Colman (colman at eurotrib.com) on Thu Sep 17th, 2009 at 05:00:49 AM EST
[ Parent ]
When was "intervention by the regulator and receivership" replaced with "bailout" in the policy toolkit? When did the Central Bankers and Finance ministers go insane?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Thu Sep 17th, 2009 at 05:07:08 AM EST
[ Parent ]
It would damage our reputation abroad. Or something. Fucked if I know. Nationalisation of the utility functions and putting the rest into receivership looks like the sane way to do it to me, but I'm not serious.
by Colman (colman at eurotrib.com) on Thu Sep 17th, 2009 at 05:10:56 AM EST
[ Parent ]
Colman:
It would damage our reputation abroad.
I'm not talking just about the Irish. Also the regulators and policymakers abroad have gone insane or forgotten what they once knew.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Thu Sep 17th, 2009 at 05:12:56 AM EST
[ Parent ]
Colman:
It would damage our reputation abroad.
as complete idiots?  Since when does "socialist" bailing out of private investors enhance anyone's reputation?  Even the investors themselves must be chuckling at the idiocy...

notes from no w here
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Sep 17th, 2009 at 05:19:11 AM EST
[ Parent ]

Display:

Occasional Series