Sunday 21 January 2018

David Quinn: Moral bankruptcy is cause of credit crisis

David Quinn

David Quinn

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.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Promoted Links

Today's news headlines, directly to your inbox every morning.

Don't Miss