Euro Mayhem

There must be a certain irony in the UK banks contemplating paying out £7 bn in bonuses and the government having to find the same amount to bail out Ireland along with the other EU members.

As I understand it, there are several countries in Europe who have pledged to meet all their own banks debt obligations but who actually cannot do so as their individual GDPs are minuscule in relation to the size of the debts.  A large proportion of this bank debt is owed to other foreign banks who are in turn guaranteed by their own governments.  If all the governments reneged on these promises to honour foreign debt it would be horrific for the banks, but would not the taxpayer – us – be better off in the long run?

I will repeat myself.. they should have let them go bankrupt in the first place.

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About robthill

I am semi-retired ICT Staff Tutor in Dundee, Scotland and an online facilitator. The views here expressed are my own somewhat quirky feelings about the world as I see it, no doubt just as prejudiced as most other bloggers.

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