mannfm11 wrote:John, the Irish crisis is due to bank losses and not government deficit spending. In order to assure stability, Ireland had to guarantee their bank debt.
This is absolutely correct and is what makes the Irish situation different than Greece. Then odd "solution" put forth in the bailout would have, in essence, Great Britain loan money to the Irish government which would then loan money to the Irish banks, which would then, in turn, repay money owed to British banks who then pay taxes on their profits to the British government. Somewhere along the line this chain will fail. The only question is when.