If you want to get ahead, then get out

SO Bank of Ireland has determined that owing to its disastrous management, it is no longer in a position to payback in full its subordinated bondholders.

Consequently, with the support of the Government it is offering somewhere between 10 to 20 cent on the euro. Well done, BoI, you recognise management incompetence has brought your company to its current insolvent state, therefore you can only repay what is affordable. Obviously moral hazard is not applicable! Now let’s take the argument to its logical conclusion. Mortgage holders who are now in arrears and not in any position to repay should make a similar offer to their bondholder, be it BoI, AIB, EBS or any other recipient of Government (nee tax payer) monies. The concept of moral hazard has long since been debunked, it is now a question of survival. Whilst spouting inanities about an entrepreneurial economy, it continues to enforce Victorian insolvency laws. It stands mute as rachmanesque rates shut down viable businesses. They rape private pension funds, yet cower like whipped dogs before public sector unions. Those who do want to get ahead, I strongly suggest they leave the island.

John Salmon