Comments on: Can you buck the markets? http://blogs.reuters.com/breakingviews/2010/12/07/can-you-buck-the-markets/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Dafydd http://blogs.reuters.com/breakingviews/2010/12/07/can-you-buck-the-markets/comment-page-1/#comment-5284 Wed, 08 Dec 2010 11:04:37 +0000 http://blogs.reuters.com/columns/?p=4789#comment-5284 “Greece, Ireland, Portugal and Spain, though, have had to be dragged — sometimes kicking and screaming ”

I’m not sure this is fair on Ireland. Ireland went down the austerity road of its own volition, and still got into trouble.

The reason Ireland got into a mess was that the Irish state chose to guarantee the debts of Irish banks. That was a big mistake, from the Irish tax payers point of view, but highly convenient for the banks of so called ‘stronger’ countries. If these debts are defaulted on (as they surely should be, the banks and now the state are insolvent) these countries will also have solvency issues in their banking sector and won’t be looking so strong any more.

As it is, the poor Irish taxpayer is being left to carry the full can, when they are only half guilty.

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