Those bondholders knew the risks they w ere taking
It's time to admit that we simply cannot afford to guarantee this level of bank debt any longer, says James Fitzsimons
THE reluctance of the Government to face down the senior bondholders is inflicting economic genocide on the Irish people. The distinction between sovereign debt and bank debt is irrelevant if you are a taxpayer forced to pay for someone else's losses. The situation might be tolerable if it was for the greater good of the community.
The price is too high for that to be the case. The scale of the problem is so large it can only be resolved if everybody carries their fair share.
The Irish banking system didn't cause the global downturn. We are just a small part of the problem. The euro, a relatively new currency, is under threat as a result of the economic crisis and the possibility that any of the European banks might fail.