The problem is not debt incurred by the government but rather that the banksters, who knowingly bought garbage bonds and made flaky loans, are demanding to be paid back at 100% on the dollar by the government and that the Irish taxpayers foot the bill for banker’s plunder, greed, and recklessness. This is criminal. Ireland should default. And it it doesn’t do so immediately then I expect the new government will probably disavow any agreement and default. Or Spain, Portugal, or Belgium will. It will happen.
The criminal banking class must be stopped. A public bailout of private greed is precisely what Bernanke, Geithner, Summers, Rubin, and Paulson forced upon the American public too. We’ve had enough of this Too Big Too Fail rubbish. These entities are Too Corrupt To Live. We need massive defaults, figurative baseball bats against the heads of the bondholders, and an end to taxpayers being forced to subsidize the sins of the wealthy against the interests of the rest of us.
The only people who benefit from our not burning the senior bondholders are the states, banks and big investors who are owed money by our banks. The Irish people however, have no interest in paying to rescue these bondholders for decades to come.
The most obvious answer is: Ireland’s European partners do not want this to happen, because it would expose the really bad decisions made by pan-European banks and their regulators over the last decade and create potential fiscal risks in other euro-zone countries.
Thinking about the future state of Ireland’s finances now, we can easily start to envision something even more shameful than default. The shameful image begins with the Irish population devoting almost every cent of its tax revenues for the next six years towards propping up parasitic lenders such as Anglo Irish, Bank of Ireland and Allied Irish Banks.
Haircuts for all as vexed Germany takes a firm grip on the clippers.