You say that the Irish banks are virtually synonymous with the Irish state, and for all the obvious reasons (idiot promise by BIFFO, market sentiment, nationalisation, etc) this is true in every practical sense.
However, it does mask an interesting underlying reality. Let's completely ignore the connections between the two (for the sake of the present discussion).
The Big Three Irish banks have X in (dubious) assets and Y in (non-transparent) balance sheets and Z in funding requirements, starting from yesterday and rolling into the foreseeable future.
The Irish state (in which I will include the 4 million poor sods who live there and are either unemployed, otherwise dependent upon state handouts, or else are mortgaged beyond the hilt) have X' in assets and Y' in balance sheets and Z' in funding requirements, likewise.
I recognise the fact that the former is essentially now merged into the latter; but what does this mean for X', Y' and Z'?
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Synchronicity
Date: 2010-12-05 08:34 pm (UTC)However, it does mask an interesting underlying reality. Let's completely ignore the connections between the two (for the sake of the present discussion).
The Big Three Irish banks have X in (dubious) assets and Y in (non-transparent) balance sheets and Z in funding requirements, starting from yesterday and rolling into the foreseeable future.
The Irish state (in which I will include the 4 million poor sods who live there and are either unemployed, otherwise dependent upon state handouts, or else are mortgaged beyond the hilt) have X' in assets and Y' in balance sheets and Z' in funding requirements, likewise.
I recognise the fact that the former is essentially now merged into the latter; but what does this mean for X', Y' and Z'?