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The Tuesday Podcast: Too Big To Save

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The Tuesday Podcast: Too Big To Save

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The Tuesday Podcast: Too Big To Save

Overly literal graffiti on the streets of Dublin. Peter Morrison/AP hide caption

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Peter Morrison/AP

The Tuesday Podcast: Too Big To Save

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In the teeth of the financial crisis, the government of Ireland decided to issue a blanket guarantee, promising to make good on all the debts of all its banks.

That guarantee, we know now, has worked out very badly for Ireland.

On today's Planet Money, we hear the story of how Ireland's decision also had huge consequences for Europe and the U.S.

Also on the show: Simon Johnson on why the bailout in Ireland has gone worse than the bailout in the U.S., and Ken Rogoff on what's likely to happen next.

For more: Our post from earlier today tells this story at greater length. And this post from yesterday shows how huge Ireland's banks are relative to the country's overall economy.

Subscribe to the podcast. Music: The Script's "We Cry." Find us: Twitter/ Facebook.