Again, I’m no economist, but seems to me people like David McWilliams and Brian Lucey have been right on most things and the Govt and Dept of Finance consistently and catastrophically wrong.
We don’t want to default on the sovereign debt because that would cause all sorts of negative sentiment. But, we can isolate the bank debt from the sovereign debt.
Bank debt is the debt that the Irish banks incurred, but this is separate from the sovereign debt which is normal country/national debt (incurred to fund the building of hospitals and motorways and the like). We can’t default on sovereign debt, but we can default on the bank debt.
The Irish problem is a European problem and requires a European solution. The Irish, Spanish, Portuguese and Greek banks owe the German and French banks over 900 billion euros. We should get together with the other debtor nations, form a bloc and negotiate from there.
Seems like a lot of good sense to me.