David McWilliams: DEFAULT

From himself – Default is Only Game in Town:

The subway was cleaned up, not by some swashbuckling free-marketer, but by diligent public officials. It proves that ideology is not the only catalyst to change.

Change comes because people want it…

On Wall Street, the talk of Ireland is all about when we default.

No one here believes a word that comes out of the European Commission, the ECB or the organs of the Irish state.

The traders I chatted to see the numbers, they see the huge debts that are there to be paid by the people, and all agree that the way to go is to default on the bank debt and start again, protecting the sovereign in the process…

Argentina went through 25 months of recession, unemployment rose and then eventually ordinary people took their savings out of their banks. Once that happened, the game was up. These Wall Street guys see Ireland as repeating precisely the same mistakes.

The interesting thing is all of them believe that, if Ireland stops paying the ‘‘odious’’ bank debts, the economy will recover extremely quickly. They also indicated that they would consider buying Irish government paper if we got rid of our bank debt. But with the bank debt, there is no way.

Read more.

This entry was posted in Accountability, Bankers' Bailout, Budget, Debt Default/Restructuring, ECB/IMF, Elections, Ideology, ireland, Irish America and tagged , , , . Bookmark the permalink.

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