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.
So a default of the banks alone will not achieve much. It has to be default of the irish government.
The Irish banks got 100 billion or from the ECB and quite substantial sums from the Irish government.
That replaces short term lending and deposits, not bonds which are long-term liabilities.
The once existing long-term bondholders continue to be long-term bondholders. Or have traded the bonds with other private bondholders since the ECB is not known to be buying bank bonds (at least, nobody is screaming bloody murder if they're doing it: they just complain about buying government bonds). Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Frank Schnittger - May 31
by Oui - May 30 44 comments
by Frank Schnittger - May 23 3 comments
by Frank Schnittger - May 27 3 comments
by Oui - May 13 66 comments
by Oui - Jun 91 comment
by Oui - Jun 58 comments
by Oui - Jun 256 comments
by Oui - Jun 112 comments
by Oui - May 31110 comments
by Oui - May 3044 comments
by Frank Schnittger - May 273 comments
by Oui - May 2742 comments
by Oui - May 24
by Frank Schnittger - May 233 comments
by Oui - May 1366 comments
by Oui - May 928 comments
by Oui - May 450 comments
by Oui - Apr 30273 comments
by Oui - Apr 2666 comments
by Oui - Apr 8108 comments
by Oui - Mar 19145 comments