Monday, May 14, 2012
Euronews report on Irish austerity to bail out private bank bondholdersThis is a good report from Euronews, Bailout brings deficit of trust to Ireland 05/11/2012, that describes a key aspect of Angienomics austerity in Ireland, the fact that the government agreed to assume the debt to bondholders of private Irish banks that were facing bankruptcy as the Irish version of the housing bubble ended. As Paul Krugman has repeatedly pointed out, the alternative was the one applied by Iceland, which was to put the banks into government receivership according to the established procedures, let the stockholders and bondholders take their losses, and reorganize the banks on a sound basis.
The text with the video reads:
Across Ireland empty buildings stand testament to the legacy of the Celtic tiger. A legacy which included a spectacular economic boom and a bust which led to an EU-IMF bailout based on tough austerity measures.Tags: austerity economics, eu, european union, ireland
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No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."
-- Cecil Day-Lewis from Where Are The War Poets?
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