Monday, May 14, 2012

Euronews report on Irish austerity to bail out private bank bondholders

This 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.

But is that bailout working? That question could soon be answered by the Irish people in a referendum on the EU Fiscal Treaty. How will that vote go? Like its banks and government, the Irish people have a deficit - but this time it is one of trust.
Tags: , , ,

| +Save/Share | |

Links to this post:

Create a Link




FEATURED QUOTE

"It is the logic of our times
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?


ABOUT US

  • What is the Blue Voice?
  • Bruce Miller
  • Fdtate
  • Marcia Ellen (on hiatus)
  • Marigolds2
  • Neil
  • Tankwoman
  • Wonky Muse

  • RECENT POSTS

  • Obama's timid jobs program
  • Is Obama's team planning to run a "Republican" cam...
  • Deutsche Welle panel discussion in English of the ...
  • Dean Baker on the European crisis
  • How significant is Obama's change of position on s...
  • The austerity vs. growth/Angienomics vs. macroecon...
  • Republican notion of bipartisanship: "Democrats co...
  • Underwhelmed on Obama's same-sex marriage announce...
  • Keynesian economics as ... "treason to the fatherl...
  • The "structural" excuse for ignoring unemployment

  • ARCHIVES




    RECENT COMMENTS

    [Tip: Point cursor to any comment to see title of post being discussed.]
    SEARCH THIS SITE
    Google
    www TBV

    BLUE'S NEWS





    ACT BLUE











    BLUE LINKS

    Environmental Links
    Gay/Lesbian Links
    News & Media Links
    Organization Links
    Political Links
    Religious Links
    Watchdog Links

    BLUE ROLL


    MISCELLANEOUS

    Atom/XML Feed
    Blogarama - Blog Directory
    Blogwise - blog directory

    Blogstreet
    Haloscan


    Blogger

    hits since 06-13-2005

    site design: wonky muse
    image: fpsoftlab.com