I meant to post a link to this back at the end of February when it went up. But I didn’t. Regardless, this article by Barry Eichengreen lays out Ireland’s problem clearer than anything else I’ve seen. Emerald Isle to Golden State
This isn’t important, but its interesting that Ireland is now along with Iceland the fucked countries to compare the rest of the world with. All that’s up for debate now is who is the third most fucked country in the recession. It doesn’t even need saying that that Ireland follows Iceland as the second most fucked. Paul Krugman writes:
Austria’s not as outrageously leveraged as Iceland, or even Ireland. But it may need a bank bailout that will seriously strain the countryâ€™s resources. So what I said at the event â€” that after those two, itâ€™s probably the advanced country at most risk from the financial crisis â€” shouldnâ€™t even be controversial.
Eichengreen and O’Rourke on ‘A Tale of Two Depressions‘
[T]he world is currently undergoing an economic shock every bit as big as the Great Depression shock of 1929-30. Looking just at the US leads one to overlook how alarming the current situation is even in comparison with 1929-30.