Ireland would save the world from much misery by defaulting now and driving the vampire banks into liquidation…
… Ireland, please drive a stake through the heart of the vampire banks which have the world by the throat. The entire controlled demolition of the Eurozone’s finances can be summed up in one phrase: privatize leverage and profits, socialize losses and risk.
The basic deal is this: protect the bank’s managers, shareholders and bondholders from any losses, while heaping the socialized losses and risks on the taxpayers and citizens.
Mr. Smith’s excellent article and graphics explain how bubbles develop, and default works.