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

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  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


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