A guest blog I did for a new group, Irish Student Left Online, on the Anglo Promissory Note. Its a specifically Irish issue, but basically a private bank made reckless gambles and was about the go bankrupt when the Irish government bailed it out. It will cost 30 billion euro to wind down the company (as in return for 0 benefit). It been a huge problem figuring how we should pay this and this week the government finally got an agreement with the ECB to delay repayments for 30 years. I discuss whether or not this a good deal.
In his debut for the ISLO Robert Nielsen goes through the bizarre and tragic nature of the recent “deal” on the Promissory Notes. Robert blogs over here normally.
Whenever discussing the banks people often preface their comments by saying that they don’t know much about economics. It is assumed that the bank bailout only seems absurd due to a lack of economic knowledge, that in actual fact the government is following well-established economic principles. As an economics student, let me tell you that nothing is further from the truth. There is no economic logic or theory behind the government’s
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