The sovereign (whatever that is here these days) debt is manageable, even with the Euro. Our problem is the banks. Businesses need credit from banks to stay open. Without credit, they can't manage their debts. If they can't manage their debts, they go bust, leaving hundreds of thousands of people out of work. That's exactly what has happened.
The decision to guarantee them unconditionally and without limit, was a decision made by central government. And things have only got worse since. A temporary nationalisation would have worked better, but Brian Cowen described it as an "Icelandic solution".
__________________
"We'd like to apologise for..."
|