a loan for every man and his dog, page-4

Recent extension of bank deposit guarantee has nothing to do with securing depositors money, instead it was a prep work to allow covered bonds.
Now that banks can issue covered bonds it makes bank lendings fail proof (well almost),
so why would banks lend responsibly? when its sure that tax payers will bail them out if ever overleveraged home investors default.

Now why would govs go out of the way to keep this ponzi going, putting tax payers and the whole country at risk?
I think its becoz most of the job creation in last 10 yrs has been direclty or indirectly result of this debt driven bubble, turning off this debt dosage will result in massive job losses and even a recession.
We have nothing to show for a decade of boom we had, instead we have a gov in deficit , our productivity has decreased, manufacturing/service/r&d in doldrums, old infrastructure and a world number one status in private debts.
A debt driven bubble, like an addict, requires an ever increasing dosage to continue, Gov will continue to intervene and thus push the can further down the road.
Caveat is, being a small economy we might not have the capacity to fund this for very long even if we want to.