Billionaire investor Dermot Desmond has said the Government's debt problems would be solved by a default or "hopefully" through controlled inflation.

Mr Desmond also said that Ireland required Constitutional reform and added "the manner in which we elect our politicians is not fit for purpose."

He was speaking at the National College of Ireland in Dublin's IFSC as it launched new courses with the Institute of Canadian Bankers.

Mr Desmond said Tom Arnold, who is chairing the Constitutional Convention, would "hopefully put forward radical reforms" and that "politicians would put country first rather than self interest."

He said "all politicians were elected on local issues" which was understandable when electronic communications were not as widespread as they are today.

Mr Desmond blamed the crash on poor economic forecasting, easy credit and poor risk assessment.

He added there was also "abysmal regulation, housing bubble and overleveraging"

Investors who would normally provide capital to banks were now being put off. He added the future lay in non-bank lending platforms.

This would reduce the level of risk in the banking system and the need for Government bailouts.