Douglas Carswell's Blog

Bailouts a failure - according to Guardian article

Great article on the Guardian site by Aditya Chakrabortty. 

At last the Guardian publishes something that accepts the wisdom of not endlessly bailing out banks with public money.  The article by Aditya Chakrabortty highlights how non-Eurozone Iceland is coping much better with the debt crisis than Eurozone Ireland and Portugal. 

Even if the Guardian sub-editor has unthinkingly written some nonsense about how Iceland has coped by "getting tough with the markets", the whole point of the article seems to be that Iceland has come out in better shape than Ireland precisely because she didn't try to buck the markets.  Rather than using public money to postpone the verdict of the markets on an unsustainable credit boom, Iceland wisely avoided nationalising private folly.    

Aditya Chakrabortty writes it up as being a defiance of economic "orthodoxy".  Perhaps public bailouts that throw good money after bad were only ever any kind of "orthodoxy" if you read nothing but the Guardian.

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