tag:blogger.com,1999:blog-8817171247555815363.post9126968171256462695..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 22/4/2012: Irish Crisis Requires Drastic Action, but Not a Euro ExitTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8817171247555815363.post-70373609972739423192012-05-02T18:42:36.514+01:002012-05-02T18:42:36.514+01:00my understanding is that krugman doesnt necessaril...my understanding is that krugman doesnt necessarily advocate leaving the euro as a solution, rather that things will continue to get worse until the unthinkable becomes in fact inevitable.ciarannoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-65811120020383805512012-05-02T04:21:04.471+01:002012-05-02T04:21:04.471+01:00If Irish Banks owe 200 Billion to People
And Peop...If Irish Banks owe 200 Billion to People<br /><br />And People owe the Banks 200 Billion<br /><br />Then a Computer would solve it like this:<br /><br />People owe 0 to Banks<br />Banks owe 0 to People<br /><br />Problem Solved.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-83742483391526099922012-04-23T23:28:12.478+01:002012-04-23T23:28:12.478+01:00Hi Constantin,
Enjoy your work (blog and media)
A...Hi Constantin,<br />Enjoy your work (blog and media) <br />A quick point while I understand that private debt deflation may not be feasible if Ireland left the euro zone, and while I am not advocating us leaving the euro zone, wouldn’t this option allow a rapid period of inflation which would have the desired effect? <br />In the event of it becoming necessary to exit and such a scenario was flagged well in advance I am not sure how much 'damage' we would suffer in terms of reputational costs/risk of FDI. Firstly I think if it was seen as a last resort move due to ECB inflexibility there would be a certain amount of sympathy even support akin. Also Ireland is attractive for reasons that are somewhat unique i.e. physical positioning on the cusp of Europe, English speaking, and well being Irish (Diaspora etc).<br />In relation to private mortgage debt, the ‘state’ banks still charge a hefty margin, up to 5%, in the case of PTSB, when ECB funding is available at 1%. In order to avoid further defaults above the 14% currently reported, would it not be better to lower all mortgage rates in the country to say 1.5% or 2% allowing a minimal margin for costs. The difference in repayments could be split with some used to pay down capital and some for spending. Obviously those in the direst situation would use any saving purely for everyday expenditure. <br />The losses to the banks/ exchequer would be spread over twenty or thirty years instead of up front, and the economy would enjoy a huge stimulus? Any merit in such an idea?Emmetnoreply@blogger.com