Ireland and Greece Keep Decaying
The Daily Bell – by Staff Report
ECB Sees EU Aid for Irish Banks, Fueling Bailout Bets … Ireland could use European Union aid to bail out cash-strapped banks, the European Central Bank said, stepping up pressure on the Irish government to prevent an escalation of the debt crisis that threatens the euro economy. As Ireland insisted it doesn’t need handouts for its public budget, ECB Vice President Vitor Constancio said it would be able to use the emergency fund set up to support euro-area governments to recapitalize banks reeling from the bursting of the real-estate bubble. “The problems of the Irish banking sector are not only problems of liquidity but also in some cases problems of capital,” Constancio said in Vienna today. While the EU rescue fund can’t lend directly to banks, the Irish government can “use the money for that purpose,” he said. – Bloomberg
Dominant Social Theme: There is always a way to pay down debt if you are part of the European Union. Come, let us reason together … and change the rules.
Free-Market Analysis: For months we have read in the mainstream media that Ireland has pulled together as a country and culture and that the “austerity” it was undertaking was working. Ireland was held to be increasingly solvent and the people of Ireland (in mainstream articles) were constantly lauded for their sacrifice and discipline. We, of course, wondered if and when this entirely false paradigm was going to fall apart. In fact, the Irish themselves did not pull the proverbial plug – but then they didn’t have to. It became increasingly clear that the government had not cut the costs it maintained it had and that the problems with Irish banks were even worse than had been conceded.