The excellent Andrew Lilico: More banking sector bailouts? When will the madness end?
The IMF Global Stability Report suggests that banks might be €200-€300 billion down as a result of the Eurozone crisis. The predictable cry has arisen that this shortfall should be made up by governments. Really? So, let’s see.
It’s well worth a read. The previously prevailing consensus is unsustainable: banks must stand as commercial enterprises. As Andrew writes, “It’s not up to poor people to pay taxes so that rich people can be spared the consequences of their gambles and mistakes.” Quite right.