Charles Hugh Smith: How Default Works


Via Zero Hedge; from Charles Hugh Smith’s Of Two Minds blog post –Ireland, Please Do The World A Favour And Default:

Ireland would save the world from much misery by defaulting now and driving the vampire banks into liquidation

Charles Hugh Smith: How Sovereign Default Works

Charles Hugh Smith: How Sovereign Default Works

… Ireland, please drive a stake through the heart of the vampire banks which have the world by the throat. The entire controlled demolition of the Eurozone’s finances can be summed up in one phrase: privatize leverage and profits, socialize losses and risk.

The basic deal is this: protect the bank’s managers, shareholders and bondholders from any losses, while heaping the socialized losses and risks on the taxpayers and citizens.

Mr. Smith’s excellent article and graphics explain how bubbles develop, and default works.

Read More.

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This entry was posted in Accountability, Bankers' Bailout, Debt Default/Restructuring, Irish America, Solutions and tagged , , , . Bookmark the permalink.

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