How to rescue the financial system

I found this clip today, it is talking about some of the issues I mentioned in the post ‘Survival of the Weakest’ and it talks about the need to save healthy banks in favour of saving weaker banks. The common sense approach would be that you don’t privatise profits and socialise all losses and that you focus on saving firms (albeit banks) that are entities worth saving to begin with.

“A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him” – John Maynard Keynes.

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Survival of the weakest, only in Ireland.

If the State can’t organise a bailout effectively then what hope have they of running a bank? A simple and yet profound question: if the bankers who run banks for a living (many having survived the 70’s and 80’s) can’t find the answers then what hope have the state who have no track record in doing so?

This is not a simple situation, banks that survived the Great Depression have crashed and burned, given this, is it vital to save every bank? Is a bank going to make it even with a slush fund? Thus far I remain unconvinced.

Anglo Irish Bank was set to get a bailout to the tune of 1.5 billion Euro. This couldn’t be arranged in time to save the bank and they have been nationalised, the speed of their fall from grace tells us at least some basic facts:

Anglo were not the strongest bank in the bunch, I won’t get into balance sheets, loans, impairments or anything else, the mere fact that they fell first …

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A 'Knowledge' based economy

Today the Irish Times had an article about an American University opening a college here, in Dungarvan Co. Waterford. It occured to me that the Island of Saints and Scholars could do with trying to encourage this type of investment if we are to truly become a ‘knowledge economy’. In creating centres of excellence it is vital to ensure that the best research and advancement is happening in a certain place, in I.T. that may be Silicon Valley, in Finance the City of London prevails.

Harvard University Professors are not paid millions, rather they teach there for prestige. With Universities such as Trinity and our strong heritage of learning (if you want an interesting take on our written word tradition a book called ‘How the Irish saved civilization‘ is fascinating) there is no reason we should not see more universities wanting to locate here and have …

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A ‘Knowledge’ based economy

Today the Irish Times had an article about an American University opening a college here, in Dungarvan Co. Waterford. It occured to me that the Island of Saints and Scholars could do with trying to encourage this type of investment if we are to truly become a ‘knowledge economy’. In creating centres of excellence it is vital to ensure that the best research and advancement is happening in a certain place, in I.T. that may be Silicon Valley, in Finance the City of London prevails.

Harvard University Professors are not paid millions, rather they teach there for prestige. With Universities such as Trinity and our strong heritage of learning (if you want an interesting take on our written word tradition a book called ‘How the Irish saved civilization‘ is fascinating) there is no reason we should not see more universities wanting to locate here and have …

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