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Bankaid in Ireland: 40.000,– per household…

In quite some Eurozone countries staggering amounts of money have been paid to save bankrupt banks (table, via @cigolo). In Ireland, this amounted to about 40.000,– per Household, in Greece to 17.000,– and in Spain to 3.000,– . Which includes unbanked households, households where every adult is unemployed and, in Spain, the 70.000 households which faced a ‘certification of a foreclosure begun’ . And there are quite some households where every adult is unemployed, in countries like Spain and Greece which face unemployment rates of 23 and 26%. Paying back this money of course depresses the economy as it’s not recirculated. At the same time, in Cyprus the Troika pushes for mass evictions based upon a creditor centered valuation system which will not only cause social harm but which also lower asset prices. That’s what debt deflation looks like.

Greeceela

Note: I’m, normally, not against evictions as such, but debts should always be distributed in a ‘reasonable’ way between debtor and creditor (not always the case, at this moment), which means that creditors will necessarily have to take a hit, too, while mass evictions in combination with fire sales of houses in the midst of a severe depression deepen the slump. The Troika has to take that in consideration, instead of just fostering the interests of creditors.

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