Moral hazard of banks writing off debt

[goingforgold]

True, but a huge loan at that time, by a bank bailing on Ireland, to borrowers who didn't even make the first repayment. Seems beyond irrational exuberance.

In my opinion it's no more irrational than giving random debt writedowns with no means of the bank recovering their loss should the benefactors inherit or come into money by other means...hence why all should try and get on this bandwagon.

The banks have defied logic up to now in everything they have done and I wouldn't fool myself into thinking they will be any different going forward.