Why are the Irish people being positioned to make good foreign bondholders' positions? Were the bonds backed by the full faith and credit of the Irish? That's not my understanding.
Correct me if I'm wrong, but it is my understanding that the bondholders took a risk that their investment would go sour, which it did, and that the average Irish person, worker, taxpayer had not ever said he or she would repay on any such defaulting bonds.
Anglo-Irish Bank did not represent a systemic risk to the Irish economy, it wasn't a high street bank like AIB or the Bank of Ireland. If it had been allowed to go the way of Lehmans the only losers would have been shareholders and bondholders. The Irish state stepped in and nationalised a bank that was basically run by crooks lending to property speculators. The Irish people are taking losses that should rightly have been shouldered by bondholders.
I should think that the Irish people would refuse en masse to accept any Irish government indenturing the Irish people under such circumstances. I would support the people's decision to oust any such government and replace it with a government that would tell the bondholders that it is not the Irish people's responsibility to bail them out of their bad private investments that went under.
A government that would thusly indenture its own people is traitorous. I would think it prudent of the people to look into the private compensation of those government leaders and to follow the money. There could be other reasons for such indenturing, but bribes certainly have proven historically frequent in the world of global so-called high-finance, private and public.