krugman gets it right on ireland

[jk]

worth reading the whole piece on ireland vs iceland. iceland is actually doing better than ireland now, because iceland refused to socialize the bankers' losses. and of course because iceland could also devalue its currency. everywhere else, governments have protected the bankers by making the general population guarantee the bankers' bad investment choices. meanwhile, the markets aren't reassured by the guarantees- instead they perceive that moving the bad debt to the public's balance sheet means that sovereign debt is now in trouble. this morning irish 10 year debt is over 9%, AFTER THE "RESCUE."

But Ireland is now in its third year of austerity, and confidence just keeps draining away. And you have to wonder what it will take for serious people to realize that punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake.

http://www.nytimes.com/2010/11/26/op...rugman.html?hp

[Shakespear]

Re: krugman gets it right on ireland

In Iceland the bankers had no place to hide except to leave the island. Plus, everyone knows everyone there, hence taught to stay as just an "unknown" talking head. In these conditions Democracy has a chance to thrive.

[BigBagel]

Re: krugman gets it right on ireland

According to this article the austerity plan may not pass legislative approval. I don't know the intricacies of Irish politics but I can only hope the banksters are dealt a blow. I would think their power grab is harder to maintain in a multi party state like Ireland as opposed to a one party state with two sub-parties like the USA.


http://www.independent.ie/national-n...y-2437557.html

[Chomsky]

Re: krugman gets it right on ireland

According to this article the austerity plan may not pass legislative approval. I don't know the intricacies of Irish politics but I can only hope the banksters are dealt a blow. I would think their power grab is harder to maintain in a multi party state like Ireland as opposed to a one party state with two sub-parties like the USA.


http://www.independent.ie/national-n...y-2437557.html

At least one person in Europe is standing up for Ireland and democracy:

http://www.youtube.com/watch?v=Fyq7WRr_GPg

[Shakespear]

Re: krugman gets it right on ireland

I love the reaction on the face of Barroso the former ...

"leaders of the underground Maoist MRPP (Reorganising Movement of the Proletariat Party, later PCTP/MRPP, Communist Party of the Portuguese Workers/Revolutionary Movement of the Portuguese Proletariat)."

http://en.wikipedia.org/wiki/José_Manuel_Barroso

[GRG55]

Re: krugman gets it right on ireland

worth reading the whole piece on ireland vs iceland. iceland is actually doing better than ireland now, because iceland refused to socialize the bankers' losses. and of course because iceland could also devalue its currency. everywhere else, governments have protected the bankers by making the general population guarantee the bankers' bad investment choices. meanwhile, the markets aren't reassured by the guarantees- instead they perceive that moving the bad debt to the public's balance sheet means that sovereign debt is now in trouble. this morning irish 10 year debt is over 9%, AFTER THE "RESCUE."



...

EJ once referred to China as the "IMF for the USA". So who is the IMF for the IMF?

[Down Under]

Re: krugman gets it right on ireland

EJ once referred to China as the "IMF for the USA". So who is the IMF for the IMF?

Yer, that's the 64 dollar question. And, how does this play out. I have a mate who'd like to buy a house; for various reasons, divorced, never owned a house before etc etc. However, it definitely seems like it's only a matter of time before Sydney / Australian real estate crashes.

And, unlike the US, Australian mortgages are full recourse.

[BigBagel]

Re: krugman gets it right on ireland

EJ once referred to China as the "IMF for the USA". So who is the IMF for the IMF?

The Illuminati, of course.