Never mind what international law says. We don’t call the system we have Capitalist for nothing. It doesn’t matter how lawful, rightful, law abiding, democratic… the new regime would be, if it doesn’t pay the big bucks back to the big boys, Ireland would be the Venezuela of Europe.
We’d be placed on the “axis of evil”.
PS; Sadly, in the eyes of International Law, we are apparently not equal.
The problem is that it isn’t true capitalism. We seem to be practising some strange form of Socialist Capitalism. The investor gets all the upside and none of the downside.
If it was true capitalism then all the banks would probably have failed. Maybe it would have been orderly or maybe chaos…but we would be in a better position now as a country i think.
Moral hazard comes up a lot and it is a principle i agree with and should be applied equally. Investors/bondholders etc. would be a lot more cautious if there only guarantee was the security of what they invested in.
Edit: Of course politicians step in, nullify the rules and guarantee everything. How would you phrase/draft a referendum to ban taxpayer bailouts of private institutions?