Bad Call

I made a ‘bad call’ when I wrote earlier on this blog that Germany was getting ready to call it a day on endless propping up of Ireland’s out of control politician and bankers.

I believe that Germany has made a ‘bad call’ by going down the road of further ‘propping up’.

Surgery is a surer form of treatment for gangrene than antibiotics, especially when the patient has had lots of antibiotic already. The analogy breaks down in our favour when you recall that economies can regrow in a way that human bodies cannot.

This is not the end of the story but rather the opening of another chapter. Greece could be seen as a ‘one off’, marginal, always problematic, not financially ‘systemic’. Ireland is extremely cross linked, is central and is ‘systemic’, with a clear path to a domino effect.

I do not think that this story will have a happy ending.