very interesting that the FT editorial today recommended that bondholders in anglo take the hit. This is the FT speaking here - one of the worlds most read and influential financial newspapers - not David McWilliams!! The editorial makes it clear that in their view ireland's fiscal problems are manageable, but the uncertainty around Anglo is more damaging than a crystallised loss would be for bondholders, who will take the hit and move on.
They acknowlegde that things have changed and "it is time to let losses fall where they should: on unsecured creditors"
quote from editorial: "Dublin fears that cutting loose Anglo’s bondholders will kill demand for Irish sovereign debt. The opposite is true, as record-high sovereign spreads show. Its huge fiscal deficits are manageable – just. It is the open-ended exposure to private liabilities across the banking system that drives up sovereign yields. Dublin must get its priorities right."
Interesting that the FT has changed its tune