Ireland would save the world from much misery by defaulting now and driving the vampire banks into liquidation.
The alternative title for today’s entry is: 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.
While there are murmurings of “forcing bondholders to share the pain,” any future haircut will undoubtedly be just for show, while the Irish pension funds are gutted to bail out the banks.