Quote:
Originally Posted by Ross
Roughly equivalent to an insurance company selling insurance on a
house not owned by the beneficiary and thus a perfect incentive for arson .
In these circumstances it more resembles betting on a horse race
rather than insurance .
So if there are defaults it would appear that it is the banks that will suffer
rather than non-bank shareholder citizens .
In short a PIGS rescue amounts to a bank rescue at tax payer expense.
IMO they should let the PIGS drown
( you can guess which pigs I am referring to ) . 
Indeed I will be deeply upset if they rescue the PIGS since once again it
will represent transfer of bank gambling loses to JoeSixPack. |
You're exactly right and this is what's happened to the people of Iceland and that has resulted in a referendum by the citizens saying they do not want the banks bailed out at their expense. Fortunately, their president showed backbone and listened to the populous, thus, preventing a mass gathering of pitchforks and torches. I don't believe failure of the PIIGS will end in the same manner.
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