Banks failing are the essence of capitalism - creative destruction… maybe even the essence of life, nature, evolution…etc.
You cannot have the creativity part without the destruction. You must first destroy the failed institution, to rebuild it.
But this theoritically can be done overnite - bank closes at 5pm, bankrupted, and reopens at 9am with new owners.
(Think to a degree eircom, which is effectivly bankrupt but is still operating; and will eventually be bought by new owners - but is still working to some shape or form)
It would not be painless, the difference is who takes the pain. The shareholders and bondholders would have taken the pain automatically without any(much) need for Government involvement. If necessary the Government could have stepped in with some interim measure to keep the banks open,
maybe an examiner, but without guaranteeing old liabilities except deposits upto an/all amounts and also working capital.
It’s not laizee faire, but deciding that the natural and well understood way of capitalism is best, as opposed to some unknown wacky untried quasi comunist/solicialising debt system, already disowned by its architect Peter Bacon.
And Greece is not an example. They have plenty of time. It’s like a slow motion car-crash.
Nothing is happening ovenight, and nothing would/should have happened overnight with Ireland if it had have been managed properly