naked capitalism

M.G. in Progress says:

I still contend that there are a number of “bad banks” around particularly in Ireland. Other banks in the Eurozone are exposed to sovereign bonds of PIIGS countries in such a way that they risk becoming “bad banks”. The ECB itself is at risk becoming a “bad bank” if it continues to hold bonds of PIIGS…Can we stop this Ponzi scheme (bad banks – governments – bad banks) and get appropriate haircuts for those who deserve it having made wrong investments?

disgruntled says:

Yves, Swedish Lex.

Irish politics has become entirely unpredictable. Anyone from here, and who’s used to the system, can give a probable outcome, from tweedle dum to tweedle dee and all that. But it’s really much more volatile than that. The segment of the electorate growing fastest is the undecideds. There is a large vacancy in the mind of the population that could be filled from any direction. And to be honest, I think by and large, for all the cronyism and corruption, the political system in a weird way reflects the population.

At first, I didn’t know what to make of the governments financial stability bill, but you know in a strange way it fits. First look at Labour and the left. Labour make noises of support for the ECB/IMF deal on the one hand, and then refute it on the other, whilst Sinn Fein are doggedly sniping at them (they’re hard-line on this). Then there’s Fine Gael, whose support has been rising in the polls recently. But despite what “serious” commentators say, about this being due to their “serious” proposals and “responsible” politics, the truth is a lot more prosaic. They’ve recently learnt to be present and yet say nothing at all. They’re making smart soundbites and that’s it. Most people have a general understanding of their politics, but Fine Gael have decided to stop scaring them so often.

So the two main opposition parties are either saying one thing and then another, or in fact, nothing at all. They’re both making lots of noise, sound and fury, little else.

Now, to this mix: Ireland has made a strategic commitment to Europe. There’s a reason referendums were re-run when the populace voted against both Nice and Lisbon. Add a dash of corporatism, the insanely important multinational sector, the legitimate desire for a strong currency, etc, etc, and a basically ultra conservative mindset (not to be confused with old fashioned conservatism, but a more local variant of “we are where we are”, ie. don’t rock the boat – and yes the Irish people are like that too). Most people here have a very dignified view of the world. As I’ve said before, we don’t like making a song and dance about things (unless of course you mean literally song and dance).

And this is it. Everything tells us to hold course. It’s strategy, it’s the basic way we do things. But to borrow from Yeat’s, “the centre cannot hold.” We’re going bust and not only do we know it, but, hundreds of thousands are personally experiencing it. Hundreds of thousands will either leave or are at least contemplating it. The country cannot survive that way. We’ve been here before, so many times its just not bloody funny. And each time one thing has happened: a change in course.

The ground work is there: the disillusionment with the european body politic. When asked we have said no to Europe the last two times and only a massive campaign of fear and bribery was used to reverse those decisions. We now know that it made no difference whatsoever. Our fears have been realised anyway.

So to get to the point. We have a government party which considers itself to be one and the same as “the people,” and which the people are about to politely tell to go and get stuffed. We have a cavernous space opening up, full of ambiguities and people who speak with both sides of their mouths. We are flirting with ideas, thoughts, what ifs, courting possibilities. And that’s why this bill makes sense. This is a tease. It appeals to that space. Allows for the possibility to do something. It’s a draconian piece of legislation from what I understand. The most centralised power ever awarded in this state. And they’ve brought it in just before an election they’re not just going to lose, but get destroyed in!?!

It must be mighty tempting to the current government and if they don’t use it in the manner in which your post suggests then its there for the opposition to use and for which they can claim credit(as they see it anyway). Whether the next government will use it or not, (I’d normally say no). But we’re going bust and we know it. Reticence ain’t always spinelessness.