Academic

THE CASH-STRAPPED CAYMAN ISLANDS will be able to borrow more. When I was there, the economy was not?

By Glenn Reynolds

THE CASH-STRAPPED CAYMAN ISLANDS will be able to borrow more. When I was there, the economy was noticeably worse than previously. Various people in the local economy were using terms like “imploding” and “collapse” to describe the government’s financial situation. Tourism is down, but to a very large degree the government runs off of fees from financial transactions, and there are a lot fewer of them than there used to be. Unfortunately, their government, like most, increased its spending to the limit during the good times and now finds itself overextended during the bad. This is playing out in various ways — civil servants may be taking a pay cut, and things like marine-preserve upkeep are taking a beating, just as new threats (like lionfish) require more. (Some wealthy benefactor should put a bounty on lionfish, soon.) Even in a tropical paradise with comparatively honest and competent government, things are tough nowadays.

UPDATE: Reader Dave Havanich writes: “Instead of wealthy investment bankers funding tournaments, we should suggest to the Chinese that eating Lionfish (which are supposed to be tasty) enhances sexual performance. It would help the rhinoceros, too!” Well, everyone knows that lionfish are much more potent aphrodisiacs than rhinoceros. And reportedly eating lionfish stimulates desire in women, too. I read it on the Internet!

Full post as published by Instapundit.com on June 09, 2010 (boomark / email).