IT IS curious logic that Greece must default on its bondholders in order to stabilise its debt so it can return to the markets, but on no account must Ireland not pay its bondholders in order to build investor confidence so it can return to the markets. Total nonsense.

A PONZI scheme is a fraudulent investment operation that pays increasing returns to its investors primarily from the money paid by subsequent investors, rather than or more so from any actual profit earned by the scheme.