{"id":5357,"date":"2010-09-12T00:30:32","date_gmt":"2010-09-12T04:30:32","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=5357"},"modified":"2010-09-11T11:34:46","modified_gmt":"2010-09-11T15:34:46","slug":"qotd-irelands-post-boom-cleanup","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2010\/09\/12\/qotd-irelands-post-boom-cleanup\/","title":{"rendered":"QotD: Ireland’s post-boom cleanup"},"content":{"rendered":"
\n

It’s not a good sign when the government has to intervene to prevent a run on a bank that is already owned by the government, but apparently, that’s what it’s doing with Anglo-Irish bank [. . .] One guesses that [. . .] the restructuring will cost a lot, and the “asset-recovery” bank will be worth very little. The Irish economy has a lot of fundamentals going for it — educated population, good corporate tax rates, and considerably fewer regulatory barriers to doing business than you find in Italy or Greece. But as a real economic boom, driven by European integration, brought increasing incomes, the Irish went on a borrowing binge even worse than our own, and inflated their boom into a bubble. One of my favorite stories of the period concerns a friend of mine, an Irish American who was married to an Irishman living in Galway. The level of status-competition that suddenly blossomed among her relatives and in-laws led her to consider opening a boutique that would literally specialize in ugly things which cost unreasonable sums of money.<\/p>\n

Cleaning up after that consumer frenzy is going to be long and painful. As it will be for us, though less so.<\/p>\n

Megan McArdle, “Ireland Moves to Shore Up State-Owned Bank”, The Atlantic<\/em><\/a>, 2010-09-09<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

It’s not a good sign when the government has to intervene to prevent a run on a bank that is already owned by the government, but apparently, that’s what it’s doing with Anglo-Irish bank [. . .] One guesses that [. . .] the restructuring will cost a lot, and the “asset-recovery” bank will be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,62,41],"tags":[436,71,33],"class_list":["post-5357","post","type-post","status-publish","format-standard","hentry","category-economics","category-europe","category-quotations","tag-banking","tag-debt","tag-ireland"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-1op","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/5357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=5357"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/5357\/revisions"}],"predecessor-version":[{"id":5358,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/5357\/revisions\/5358"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=5357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=5357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=5357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}