{"id":846,"date":"2011-02-01T18:54:07","date_gmt":"2011-02-01T22:54:07","guid":{"rendered":"http:\/\/zzzptm.com\/wordpress\/?p=846"},"modified":"2011-02-01T19:09:18","modified_gmt":"2011-02-01T23:09:18","slug":"should-we-have-let-the-banks-fail","status":"publish","type":"post","link":"https:\/\/zzzptm.com\/wordpress\/?p=846","title":{"rendered":"Should We Have Let the Banks Fail?"},"content":{"rendered":"<p><a href=\"http:\/\/www.bloomberg.com\/news\/2011-02-01\/iceland-proves-ireland-did-wrong-things-saving-banks-instead-of-taxpayer.html\">Interesting article about Iceland, which let its banks fail instead of bailing them out.<\/a> Creditors for the banks had to take their losses and the taxpayers didn&#8217;t have to foot the bill. Iceland&#8217;s government took a hit and their economy went way down, but they&#8217;re apparently on their way back up.<\/p>\n<p>Ireland, on the other hand, has a government that, like the US, wants its taxpayers to pay for the banks&#8217; criminal, stupid, and\/or reckless behavior. Iceland&#8217;s public debt, while high, is still manageable. Ireland has taken on debt that is 12 times &#8211; 1200% for those who like big percentages &#8211; of its GDP. This is known in economic circles as &#8220;unmanageable.&#8221;<\/p>\n<p>While the USA has a big enough GDP to absorb the calamities of 2007-2008, will it be able to manage things if there is another banking crisis? <a href=\"http:\/\/www.oliverwyman.com\/ow\/pdf_files\/OW_EN_FS_Publ_2011_State_of_Financial_Services_2011_US_Web.pdf\">It might happen&#8230;<\/a> Click that last link for a paper on how the underlying fundamentals of the banking system remain reckless, stupid, and, yes, criminal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interesting article about Iceland, which let its banks fail instead of bailing them out. Creditors for the banks had to take their losses and the taxpayers didn&#8217;t have to foot the bill. Iceland&#8217;s government took a hit and their economy went way down, but they&#8217;re apparently on their way back up. Ireland, on the other [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5],"tags":[],"class_list":["post-846","post","type-post","status-publish","format-standard","hentry","category-economics","category-us-government"],"_links":{"self":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=846"}],"version-history":[{"count":2,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/846\/revisions"}],"predecessor-version":[{"id":848,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/846\/revisions\/848"}],"wp:attachment":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}