Joe O'Toole (Independent)

Once again, taxpayers and the Government are facing into a black hole caused by the irresponsibility of the private sector and its leadership in the banks. It should not be forgotten what they have done to us because we must not come to rely again on those who got us into the mess in the first instance.

The Government has taken a responsible attitude towards the redemption of senior bonds and bondholders, stating throughout that these bonds are fully guaranteed and that it will pay them back in full. It has done so because it believes the alternative would cause extraordinary reputational damage to the country. It also takes the view that even a threat not to pay back these bonds would cause such damage to the country's reputation as to make any such move unaffordable. I have supported this view until now. The reason I no longer support it is that it has created a moral hazard because reckless, irresponsible and uncaring currency traders and bond marketeers around the world now have the best of both worlds.