-- Irish Finance Minister Brian Lenihan persuaded lawmakers two years ago to back a guarantee of the country’s financial system to give banks time to wean themselves off European Central Bank and government life support.
Instead, the banks are growing more dependent on the ECB. The cost of insuring Irish government debt against default has soared to a record as bond buyers shun Irish lenders, forcing the Dublin-based parliament to debate extending a guarantee of all deposits and most bank securities as the original pledge expires today.--
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Comment: Over the past one or two decades I have wondered how the economic "elites" in some of the smaller European countries, including Ireland, felt how to make a point by adopting the superficial academic scribblings of their US colleagues. Iceland was the tip of iceberg in this respect. Along with the adoption of fake US mainstream economics (as it is represented in the so-called "top journals" and taught at the US "top schools") came a very strange arrogance, a kind of arrogance that comes automatically with ignorance. Now the time has come to pay the price.
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