The UK Telegraph seems to have taken the whole Irish collapse very personally. First they run an article about how hundreds of London traders were shouting monkey noises at Lenihan - a story that has turned out to be on the imaginative side of truth.
Now they have an article saying Ireland should cut all government expenditure, let all the banks die, and then leave the euro.
Happily, they think that tax hikes should be avoided as they would harm the recovery. Its good to hear that those smart economist in the Telegraph seem to have worked out that scrapping most government spending wouldn't harm the economy (!).The Departments of the Arts, the Environment, Community Affairs and Defence should all be scrapped, along with their budgets. Free university tuition fees and all overseas development aid should be abolished. Ireland’s enormous social welfare budget, designed during years where mass unemployment seemed inconceivable, should be ruthlessly cut, so that they help only the very poor and unskilled. A fire sale of government assets (such as the state-owned gas and electricity companies) and the halting of capital expenditures would help to pay down the national debt and reduce interest payments. Further tax hikes should not be considered – these would make economic recovery even less likely.
Of course, elsewhere in today's edition, they think that the tory plan to cut child benefit for the rich is a tiny bit harsh.
Have they gone a bit mad? Why is the Telegraph taking such an emotional interest in our economy. Might their editor or owners be among those mysterious bondholders?