I am the daughter of an ex-professional gambler -- who won.
If a gambler loses on all bets of the day but, looking at the form, sees a chance in the last race, he can make good on the whole day's losses.
The markets are a betting shop. Let's put the Irish Government's amalgamation of private bank debt and sovereign bond debt into the context of a bookies shop: if the bookie pays out on all the bets made by the punters, for example on a Saturday afternoon, regardless of whether their horses came in or not, the astute punter won't bet on the last race in that shop because he knows that bookie will be bust before the end of the day. He'll head to the one down the road instead.
These media say 'oh but if we don't pay out on every losing bet the punters won't come into the shop again'.
It's laughable -- where there is a bet to be won there will be a gambler, but what self-respecting gambler would go into the bookie that's bound to close down?
The secret to solving our problem is this: cut our losses through credit default swap on previous bank bad debt, then draw in the punters on a loss leader -- guarantee to pay out on new bets made by these bond investors for the next year only. After that they are on their own.
Bray, Co Wicklow