On Ireland’s apparent nakedity

We should probably view Ireland’s decision to exit its bailout sans precautionary credit line more like a scarf dance than a total strip show…

Ireland has evidently decided that the cost of not having a pre-arranged ECCL exceeds the cost of negotiating an ECCL under duress. The characterisation of ECCL/no ECCL = OMT/no OMT is too simplistic. The reality is a matter of degree. Not having an ECCL does not rule out OMT, it merely slows the ECB response down as an ECCL would have to be negotiated and approved first.