Wednesday, October 26, 2011

EU countries: whatever we do, don't do what Ireland did

From the statement of the European Union heads of government council meeting:


A simple repetition of the 2008 experience with full national discretion in the setting-up of [bank] liquidity schemes may not provide a satisfactory solution under current market conditions.  

In other words, putting the entire balance sheet of your busted banks on the public debt, like Ireland, hasn't worked that out well.