2 thoughts on “The Spanish bailout is no solution at all”

  1. Posted 12/06/2012 at 11:54 | Permalink

    Ahi va un buen articulo

  2. Posted 12/06/2012 at 14:49 | Permalink

    It seems Spanish and EU governments have learnt nothing about the “moral hazard” of bailing out banks. How hypocritical that just a few days ago Michel Barnier was claiming to have found the magic solution to avoid taxpayers’ backed bail outs (http://www.ft.com/cms/s/0/f94b6432-afeb-11e1-ad0b-00144feabdc0.html#axzz1xaf7uGwZ)

    The real problem is not “moral hazard” in the banking system, but moral hazard in the public sector: governments keep on bailing each other out using the wealth of their citizens; governments don’t rely on the taxpayers’ safety net, they directly use their money to achieve all kind of crazy policies which in the financial sector they call them “bets” or “casino banking”. What we need is a end to “casino” governments and a making sure that the morally repugnant use of taxpayers’ money for these activities ends. Tax cuts would be the best solution. No tax revenue equals smaller government, hence “too risk to fail” governments conundrum disappears.

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