Ireland's "String and Sealing-Wax Fix"; Irish PM Loses Confidence of Own Party; European Sovereign Default Risk Hits All Time High
Posted: 23 Nov 2010 11:12 AM PST
[Good links - I don't agree with cutting the minimum wage, though.]
News in Europe regarding Ireland, Spain, and Portugal is ominous. Credit Default Swaps (CDS) are soaring in Spain and Portugal. European sovereign risk jumped to an all-time high.
Lloyds TSB says "Ireland’s debt woes may spread because investors have lost confidence in policy makers".
Members of his own party are calling on Irish Prime Minister Brian Cowen to resign.
The quote of the day goes to Bill Blain, a strategist at Matrix Corporate Capital LLP in London who said "“Bailouts are nothing but a short-term string-and-sealing-wax fix”.
With that let's take a look at some specific news.
Zero Confidence in Irish Solution
Lloyds says Ireland’s Woes May Spread on ‘Zero Confidence’
Credit Default Swaps Soar in Spain, Portugal
In spite of the Irish bailout, Spain, Portugal Bank Debt Risk Soars as Traders Look South
Irish Prime Minister Brian Cowen Loses Confidence of His Own Party
Members of his Fianna Fail Party may ask Cowen to Resign.
Ireland Borrowing Costs 5%, Same as Greece
Dutch Finance Minister says Ireland to Borrow From EU at Same Rate as Greece
Dilution Concerns Plague Bank of Ireland
Over bailout dilution concerns, shares of Bank of Ireland Plunge 31 Percent
Rescue Package Set at $114 Billion, 85 Billion Euros
The cost of the bailout keeps going up. The original estimate was for a $50 billion bailout. Now, Ireland Said to Need 85 Billion Euros for Rescue
A tip of the hat to Bloomberg for every one of the above links.
Ireland at Crossroads
Here are my thoughts expressed in Irish PM Dissolves Government; Spanish Banks Face Debt Challenge; Greece May "Shut-Down"; Meaning of "Guarantee"; Should Ireland Ditch the Euro?
Mike "Mish" Shedlock