If you are a large company and both Ireland and Germany are guaranteeing bank deposits, where are you going to put your money? (Hint: Not the U. S.). Since we are running a current account deficit that requires 2.5 billion dollars in foreign aid...oops, I meant money, every single day, then we are going to have to do something that will keep big money from running to Ireland and Germany. Solution? Guarantee all bank deposits.
This will allow banks that should fail to keep on operating, thus becoming zombie banks, which will in turn hurt all healthy banks because they will have to compete with zombies.
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