by JP Floru

 

Ireland bailed out its banks to stop the much vaunted but never explained domino effect of banks going down.  As a result its debt went up, and its AAA credit rating went down.  Most investment funds are required to be established in AAA countries. So, it is said, Ireland’s financial industry is increasingly moving abroad to places like Luxembourg.

How’s that for a domino effect?

When individuals make a mistake, it may have a domino effect.  But so do the state's mistakes.  The only difference is that when the state creates a domino effect it will be of far greater magnitude than an individual's.

To read more, click here: http://www.adamsmith.org/blog/international/ireland-and-the-law-of-unintended-domino-effects