Duncan’s Economic Blog

I agree with Guido…

Posted in Uncategorized by duncanseconomicblog on November 30, 2010

At least on the immediate question of Ireland.

They should default. 20% of tax revenues going on interest payments is not sustainable. Better to default early than drag it out.

 As David McWilliams argues:

This is our trump card and we must have the courage to play it. The deal is simple. If they don’t do the deal willingly, we need to default and see what happens. And do you know what will happen? They will find a mechanism to take the shares of Irish banks onto their balance sheet. And the crisis will be over, because they will not risk the euro and all that political capital to teach the Irish a lesson.

More on this question at Slugger O’Toole.



3 Responses

Subscribe to comments with RSS.

  1. […] This post was mentioned on Twitter by Will Straw, Daniel J Bentley, pam lorenz, bill bold, Mehdi Hasan and others. Mehdi Hasan said: RT @DuncanWeldon: On the immediate question of Ireland, I agree with @guidofawkes http://wp.me/pt0AC-jt (Not a tweet I expected to ever … […]

  2. CharlieMcMenamin said, on November 30, 2010 at 1:25 pm

    Can I recommend the animated version? Complete with leprechauns, Father Ted and a convincing looking Celtic Tiger but still a pretty shrewd analysis at the end of the day

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: