Euro in Crisis - Megan McArdle - Business - The Atlantic
Euro in Crisis - Megan McArdle - Business - The Atlantic
More on the euro crisis. Another point about European integration is that there is no consistent bankruptcy policy across borders. I mean that if those Irish banks made all those terrible loans, they should go out of business. But due to national pride that can't happen. Let's look at the S&L crisis of the 1980s http://bit.ly/qaD6M. A mess of banks made some really bad loans and went out of business. What happened in Ireland the last couple of years? The banks were taken over by the government and propped up. They need to be slowly unwound. Why does every country in the Eurozone need its own bank?
More on the euro crisis. Another point about European integration is that there is no consistent bankruptcy policy across borders. I mean that if those Irish banks made all those terrible loans, they should go out of business. But due to national pride that can't happen. Let's look at the S&L crisis of the 1980s http://bit.ly/qaD6M. A mess of banks made some really bad loans and went out of business. What happened in Ireland the last couple of years? The banks were taken over by the government and propped up. They need to be slowly unwound. Why does every country in the Eurozone need its own bank?
posted by Spud at 4:06 PM
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