From Mike “Mish” Shedlock / Global Economic Analysis blog – Massive Rout in Irish Elections; Collision Course with the EU; Default the Best Option for Ireland:
Arrogance and Gall of the EU
Ireland, not the EU is in charge here. The opening salute from Kenny should not be to ask for EU concessions but to simply say “Go to Hell” or more politely to offer 1 cent on the dollar for debt. That will set the proper tone for serious negotiation, and it is something I have been saying for many months… Calling for a vote is actually a very good idea. It would remove the stigma of Kenny saying “Go to Hell”. Instead the people of Ireland can vote to tell the EU to “Go to Hell”. Other than outright default, putting the decision to a vote is the only thing that makes any sense given the stubborn arrogance of the EU.
Onerous Terms Cannot and Will Not be Honored
It is beyond stupid to demand terms so onerous they cannot possibly be paid back. Martin Wolf, writing for the Financial Times feels the same way…
Changes in interest rates are meaningless, so would trivial, symbolic writedowns.
Wolf asked the key question I have been asking for months: Why should the taxpayers of the borrowing country pay all?
The answer is they shouldn’t. Moreover I doubt they can. It would wreck the Irish economy to do so. If the EU breaks up over this, well that is the EU’s problem more than it is Ireland’s.
It is high time banks, not taxpayers bear the brunt of stupid lending decisions. There is no better time than the present to send that message, and the best way to do that is have the voters of Ireland decide.