Eating the Irish by Paul Krugman

[Joanne98]

What we need now is another Jonathan Swift.

Most people know Swift as the author of “Gulliver’s Travels.” But recent events have me thinking of his 1729 essay “A Modest Proposal,” in which he observed the dire poverty of the Irish and offered a solution: Sell the children as food. “I grant this food will be somewhat dear,” he admitted, but this would make it “very proper for landlords, who, as they have already devoured most of the parents, seem to have the best title to the children.”

OK, these days it’s not the landlords, it’s the bankers – and they’re just impoverishing the populace, not eating it. But only a satirist – and one with a very savage pen – could do justice to what’s happening to Ireland now.

The Irish story began with a genuine economic miracle. Eventually, though, this gave way to a speculative frenzy driven by runaway banks and real estate developers, all in a cozy relationship with leading politicians. The frenzy was financed with huge borrowing on the part of Irish banks, largely from banks in other European nations.

Then the bubble burst, and those banks faced huge losses. You might have expected those who lent money to the banks to share in the losses. After all, they were consenting adults, and if they failed to understand the risks they were taking that was nobody’s fault but their own. But, no, the Irish government stepped in to guarantee the banks’ debt, turning private losses into public obligations.

http://234next.com/csp/cms/sites/Next/Opinion/Columns/5647106-148/story.csp

[elleng]

1. Good one. Let them eat Ice!

[xchrom]

2. Recommend

[Creative]

3. The trouble with Krugman is that most serious economists have

forgotten more than he will ever know.

Besides that, he thinks that there is boogyman behind every tree.

Surely, he must realize that all politicians have cozy relationships with money. It doesn't matter if it's yours, which they take by force, or money that they accept from those seeking to buy another piece of legislation. That is how they keep their jobs.