This 'widows and orphans' reason why the Bond holders must not take any loss, was trotted out to bolster an earlier reason that started to wear thin, which was that if Ireland pissed off the bond holders then they would refuse to ever deal with Ireland ever again and Ireland would never be able to borrow ever again, ever, and everyone would die in penury, friendless and cold. That first reason started to look like it might not hold, when the Germans started to talk rather too openly about how it might be best for all, them especially, if Greece did 're-structure' its debts (default on its bond holders - a teeny bit). When no one said it would be the end for Greece if it defaulted on the mighty bond holders, Ireland's 'the sky will fall in' reason for not asking its bond holders to share the pain started to look like what it was, a politically motivated lie. Thus the grannies and orphans had to be hurriedly wheeled out.
http://golemxiv-credo.blogspot.com/2010/10/who-are-bond-holders-we-are-bailing-out.html
