No 'moral hazard' for the bondholders
Published 16/05/2011 | 10:00
"There is a genuine issue about moral hazard. You cannot be writing off one person's debt and expecting another person to pay their debt" -- Richard Bruton, explaining why the law will not allow debt forgiveness for stressed mortgage-holders.
Is that not exactly what was decreed by the ECB last November, what the previous government shamefully agreed to, what Mr Bruton's Government is now implementing -- the transference of debt from a stressed debtor (the banks) to another person (you, me, every man, woman and child in this country)?
Have we, the Irish people, not been saddled with the debts of another? Where is the 'moral hazard' as applied to the bondholders, those whose billions fed the furnace? In their reckless lending, their poor judgment, their bad investment, why are they still not even singed by the flames that have engulfed the Irish economy?