Ireland's Big Mistake

I took the day off yesterday. Today, I'm just going to post some interesting stuff from other folks. Right now, I'm not going to post anything original -- because it won't be (original), it will just be more ranting about the state of the world, the totally spineless Democrats, and the insane Republicans who have the nerve to say, "Progressives and Socialists have shown a total inability to govern, and have been rejected by 'the people'.".

Anyone with half a brain, the ability to read, and the ability to think beyond a third grade lavel knows that is BULLSHIT!!! We have all contracted a strange form of amnesia -- even those who should know better. It's insane! INSANE!

This from Paul Krugman -- please follow link to original.


November 16, 2010, 10:19 am
Ireland’s Big Mistake

I’ve been thinking about the ongoing Irish mess, and I suddenly realized the true nature of Ireland’s big mistake.

It should have been Texas.

Think about it: the savings and loan crisis was about runaway banks, which had to be bailed out at (huge) taxpayer expense. And as best I can figure, about half the taxpayer cost came from just one state: Texas. Yet the burden was borne nationally. So it was as if the European Union as a whole were taking responsibility for Anglo Irish etc., which would of course make the whole Irish situation much less serious.

The Irish just picked the wrong continent on which to engage in crony capitalism.

Update: Hard data on the state distribution of losses in the S&L crisis are hard to come by –assertions that Texas was responsible for about a half are widespread, but I haven’t been able to track down the original source. (Anyone who knows where to find this, please weigh in in comments.) But it’s not controversial that Texas was the epicenter: see, for example, this report (pdf) from the FDIC, which tells us

Because Texas S&Ls had been among the most aggressive growers, the situation there was particularly acute. By year-end 1987, insolvent Texas S&Ls accounted for 44 percent of the assets in all RAP-insolvent S&Ls in the country, and the unprofitable Texas thrifts accounted for 62 percent of all losses nationwide.