Paul Sweeney: Regular Progressive Economy blogger on Finance, Dr Jim Stewart, has a letter in today’s Financial Times - co-authored by his TCD colleague Prof Louis Brennan - on the Anglo Irish bailout.
Commenting on that newspaper's Editorial last Friday on the debacle that is the foolish and costly Government bailout of Anglo Irish Bank, they suggest “negotiating the purchase (at a fraction of face value) of the bonds from the reckless lenders that funded the banks’ foolishness.”
Another alternative, they suggest, is that “as proposed in a recent BIS document, is that debt instruments could be written off entirely.”
Stewart and Brennan rightly warn of the “inevitable self-serving noise from the usual suspects, continuing to indulge at any cost the lenders that engaged in wholesale recklessness is a luxury that Ireland’s taxpayers and economy can ill afford.”
Is it not time to call a halt to this disastrous Government decision and for it to negotiate, hard, with the “reckless” bondholders? Or are our leaders so incompetent that they multiple every error they make. At our immense and growing cost.