All Commentary
Monday, November 22, 2010

Ireland Gets Rescue Loans

“Ireland has formally applied for a rescue package worth more than $100 billion, after months of trying to survive its financial crisis with austerity measures and strict budgetary planning…. The loans to Ireland were necessary in large part because of the faltering state of the nation’s banking system, underscoring the extent to which ailing banks remain a threat to recovery two years after the financial crisis rippled through economies and pressured banks around the world into accepting bailouts…. [T]he Irish government has been sinking further and further into debt since its 2008 decision to protect its banks from all losses.” (New York Times)

State-backed banking systems are inherently fragile.

FEE Timely Classic
“Banking Without Regulation” by Lawrence H. White