Credit Default Swaps hit a record high yesterday for Irish Sovereign Debt. CNBC spoke to Brian Cowen on this topic yesterday, our Student Protests got a mention at the very start, Mr. Cowen believes this is short term sentiment, and while you can use a cyclical argument against Ireland, there is a secular argument about our debt: that it will be more expensive in the future (forever).
Using credit default swaps we are placing ahead (as in more risky) than Pakistan, Argentina and Iraq! Behind only Venezuela and Greece, interesting times….
Question. What would happen to the various State Savings (http://www.statesavings.ie/) were they to actually default on their debt? Those savings are “government bonds” also. Are they a totally different thing, when it comes to losing money, or one and the same.
Similar question, what would happen to those state savings, or indeed regular bank deposits, were they to leave or be ejected from the Euro and a Punt-nua come into effect at say 50c exchange rate.