Friday, November 26, 2010

Financial Writers Slam Irish Bailout


Paul Krugman wrote yesterday:

These debts were incurred, not to pay for public programs, but by private wheeler-dealers seeking nothing but their own profit. Yet ordinary Irish citizens are now bearing the burden of those debts.

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Punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake.
Mike Whitney noted yesterday:
Don't believe the hype about European unity or saving Ireland. My ass. This is about bailing out the banks. The bondholders get a free ride while workers get kicked to the curb.
And Mish pointed out last week:
Today the Irish Government sold its citizens into debt slavery by agreeing to guarantee stupid loans made by German, British, and US banks.

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Why the average Irish citizen should have to bail out foreign bondholders is beyond me, but I do note that the same happened in the US with taxpayers footing an enormous bill for Fannie Mae, Freddie Mac, and AIG.

1 comment:

  1. 'Tis the logic of disaster capitalism that the predatory capitalists pillage and have losses socialized while the population must suffer austerity and dramatically decreased life expectations.

    It is happening in the U.S. also, but is being executed more indirectly in the form of major cuts in state revenue for public education, social services for the disabled and mentally ill, and for the elderly.

    The ruthless era of capitalism we are experiencing has been named and decried by many. Max Keiser's formulation of the neo-feudal, gulag economy is my favorite articulation.

    The question is will the population rise up and revolt against this economic tyranny before it is too late to resist?

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