David McWilliams: “If I lent to a bad supplier, would you pay for my stupidity?”

From David Mc Williams, chatting with an Austrian business man – Citizens Must Fight Rise of European Bankocracy:

When asked about the euro, he replied that it was and still is a bad idea, because of cultural differences, which he was keen to highlight. He said Austria is not Greece or Ireland or even Belgium but now Austria’s future was tied via the euro to these countries.

But on the other hand, as an Austrian exporter, like many German exporters, he explained that at least the crisis prevents the currency from rising. The weak euro — a direct consequence of the debt crisis — was helping him remain competitive against the rest of the world.

He suggested that if the Austrian and the Germans had their own currency, they would have currencies which would have increased dramatically in value in the past years. Therefore, as an exporter, he wasn’t that phased by the debt crisis which he believed would only be solved by mass debt restructuring, defaults and creditors paying.

When asked what about the Austrian banks who had lent to banks in Ireland, Portugal and Spain that might lose out in a default situation, he was dismissive.

Screw them. They lent to bad companies. Why didn’t they do their due diligence. Have they never heard the expression buyer beware? If I lent to a bad supplier would you pay for my stupidity?

This story displays the complexity of the entire euro debt and credit crisis, which is getting worse by the day. The citizens of the likes of Austria do not willingly want to pay for countries like Ireland but they equally understand that Ireland is not being bailed out but the banks that lent to Irish banks are being saved from the implication of their own greed.

Read more.

This entry was posted in Accountability, Bankers' Bailout, Budget, Debt Default/Restructuring, ECB/IMF, Economy, EU, Euro / Sovereign Money, Housing Bubble, ireland and tagged , . Bookmark the permalink.

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