Banks are lucky

Banks are lucky that they are the right size to ‘save’, as we remember, the banks were ‘too big to fail’. Which meant that when some of the banks became insolvent (bankrupt) all of the banks were eligible to receive welfare payments so that they could continue paying their bank clerks huge bonuses for doing the job they are already paid to do.

Now this week we learnt that it is also possible to be ‘too big to save’ like Italy, Spain and Portugal. These countries are too big to save if they get into financial difficulties, so we need to make sure it is possible to lend to them cheaply now just to make especially sure that they wont need to borrow money in the future.

Those banks sure are lucky to be ‘just the right size’ so receive state subsidies.

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