‘National mania’ blamed for Irish crisis

The FT.com on the report about Irish banks. The national speculation seems to be a feature of all such financial crises. It is obvious in retrospect. At the time, everyone is part of it and after none will take responsibility.

"Mr Nyberg said the attendant risks went undetected or were seriously misjudged by regulatory authorities “whose actions and warnings were modest and insufficient”.

A “happy go lucky” attitude prevailed during the period, including among the bondholders that lent to Irish banks.

“When it all ended, suddenly and inexplicably, participants had difficulty accepting their appropriate share of the blame for something in which so many others were also involved and that seemed reasonable at the time,” the report states"