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The Irish central bank and Ireland in general did not really regulate its own banks. Your theory that that was somehow the responsibility of other regulators to regulate Irish banks let's your neoliberal irish friends of thew hook.
I grant you that the Irish Central Bank failed to regulate its banks. Most likely regulatory capture. But there are two sides to every loan. When the Irish real estate bubble popped there were lots of foreign banks that were owed money. These banks also had an obligation to perform due diligence when making the loan. That they did is laughable. So they and their regulators also bear responsibility. But, especially in Germany, the attitude is that this is all the fault of a bunch of irresponsible banks in peripheral countries - the German version of evil foreigners.
I advocate a fair sharing of responsibility where each party takes a haircut. You advocate having only the evil foreigners take the haircut. Granted my position is unhelpful to German, British and other creditors and their agents in the guise of the ECB and BOE. Were all oxen to be gored perhaps there would be an incentive to construct a fairer and more balanced system that serves the purposes of more than just the elites in Germany. "It is not necessary to have hope in order to persevere."
And now you have this cunning plan that foreign holders of Irish government bonds are unworthy and domestic holders are worthy. That is fine as as far defending the interest of the Irish elite goes, but why is that now suddenly a pan-european progressive project?
And now you have this cunning plan that foreign holders of Irish government bonds are unworthy and domestic holders are worthy.
We need to return private banking to the days of unlimited personal responsibility of the bankers for the solvency of their institutions. The state can clean up damage to others, but should see that the full burden of fiascoes fall on the bankers themselves. Current policy is the exact opposite. That is the core problem. "It is not necessary to have hope in order to persevere."
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