Ilargi: Ireland this week announced full insurance for all bank deposits in the country, to the tune of some $650 billion. This is twice the country’s GDP. For comparison, if the US were to do the same, about $25 trillion would be required.
Is this realistic, in either of the countries? You kidding me? Ireland would only need one major bank run to turn into a scary mess, adorned with fighting in the streets. Let alone two or three.
For its part, the US has huge problems passing a $700 billion "rescue" (the Senate raised it to $800 billion), and its FDIC banking insurance fund has maybe $45 billion left.
No problem, the FDIC keeps reiterating: we can always borrow from the Treasury. Well, nice and all, but then you’re back to square one, ain’t you? You would have to put the taxpayer in deeper debt, in order to insure that same taxpayer’s bank deposits. How does that qualify as a plan?
Ilargi of the blog Automatic Earth rants about economic collapse and speculates about societal collapse. What does this have to do with Criminology? Anyone care to speculate about crime rates in the near future? I'll hazard a guess that arson rates will go up. Tom
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