Via Irish Economy blog … (Shhhh! No one tell this to Leo Voldemort and his fellow corporate-drones in Fine Gael!); from the ultra-republican Irish Times comes the news from the ultra-leftist international money-manager, Nouriel Roubini – Burden of bank debt ‘must be shared’:
ECONOMISTS NOURIEL Roubini and Ken Rogoff, two of the most prominent academic commentators on the financial crisis, said the Government should compel senior bondholders to bear some of the cost of rescuing Ireland’s banks.
Although second-class bondholders in some Irish banks have taken discounts on their investments, “haircuts” for senior bondholders were ruled out at the time of Ireland’s bailout deal with the EU and the IMF.
Dr Roubini, nicknamed “Dr Doom” for predicting the crisis two years before it struck, said Ireland risked insolvency if senior bondholders were not tackled.
Dr Rogoff, a former chief economist with the IMF, said the scale of the austerity foreseen in Ireland was akin to that seen in Ceausescu-era Romania.