ireland and iceland

now another euro country that is ireland had went bankrupt.this is due to the blanket guarantee that were imposed during bank crisis there.similar to what happens in indonesia during soeharto regime.soeharto also imposed the same policy of blanket guarantee during indonesia bank crisis in 1997 but this is a wrong move as the banking collapse and the indonesian government were responsible to pay out all the debts of those bank.ireland now had to pay this hefty price and enacted harsh austerity measure to save its country from being defaulted.you see sometime learning economy is just really important.

perihal:

"Ireland has been orthodox and responsible — guaranteeing all debts, engaging in savage austerity to try to pay for the cost of those guarantees, and, of course, staying on the euro. Iceland has been heterodox: capital controls, large devaluation, and a lot of debt restructuring"
- Lands of Ice and Ire - NYTimes.com (lihat di Google Wikipinggir)