D. McWilliams: "Pouring more cash down banking black hole is theft"

darkknight

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Irish Independent



...

The European-wide 'forest fire' referred to by Olli Rehn will burn through all sovereign debt as weakness in the unbailout-able Spain causes an existential crisis for the euro. We would default because we would have to. It would be chaotic, and it would probably spell the end of the euro.

... It is dishonest to fill our boots with IMF and EU money, but the IMF/EU are being equally dishonest about the situation by giving the money to us.

The honest thing to do is to realise what the problem is (the banks) and admit that pouring further cash into those black holes is theft -- from either the Irish taxpayer if we pay the loans back or from the IMF/EU if we default on their loans. The honest thing to do is pass a bank resolution which swaps the debt for shares -- a debt-equity swap in the banks -- and get that €120bn liability off the national and international balance sheet....

Basically, he agrees with the panelists on last night's Vincent Browne show.
 


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