David Quinn: Moral bankruptcy is cause of credit crisis
Published 27/08/2010 | 05:00
THE decision by ratings agency Standard & Poor's to downgrade our credit rating the other day is just one more sign that Ireland is still in danger of becoming a sub-prime country.
The sub-prime crisis is like a contagion. First the banks lent to sub-prime customers against all common sense. That made the offending banks themselves sub-prime.
To stop those banks going under, governments then started pumping public money into them with the consequent danger that those governments themselves will go sub-prime. That has already happened to Greece.