Here is my comment on Joan's site:
This is a scary interview that deals with the UK situation:[UPDATE: here is an excellent article about just what's been done by the Irish political class. A warning to us all]
Our friends down south would see an immediate problem with the GERS Scottish surplus, which allows for "a share of the UK government's banking bailout funding". Read any English site and they'll say than ALL of the RBS/HBoS bailout funding should be attributable to Scotland because their registered offices are here.
There are several points we can make in response. Would an independent England have permitted a foreign bank (RBS) to take over NatWest and so grow so big? Even if RBS had grown so large in an independent Scotland, would the City not have given more support to Barclays (and not to the foreign RBS) in the ABN/Amro take-over battle thus saving RBS? And the big one: What banking regulations would Scotland have had if independent back in 2008?
It's no good for Nats to just say that we'd have done things differently. Given the dominant Keynesian belief system I'd guess that we may well have gone down the Irish road. What a future Scottish chancellor needs to say is that there will be NO bailouts of banks - or of any other private business for that matter. Government guarantees are what have led to this crisis. Until the mal-investments that were caused by the state-supported credit boom are liquidated, there will be no recovery.