EU's Irish Rescue Fails to Stem Contagion; Spain Bonds Drop

[Joanne98]

Source: Bloomberg

European governments’ 85 billion- euro ($113 billion) bailout package for Ireland failed to quell the market turmoil menacing the euro as stocks, bonds and the currency declined.

Irish 10-year bonds slid after an early advance, Spanish bonds slid by the most since the euro’s launch and European shares sank 1.4 percent. The euro slid against 15 of its 16 major counterparts and the cost of insuring the debt of Spain and Portugal against default soared to records.

“The notion that a rescue package for Ireland would create a firewall and stop the fear of contagion is clearly discredited,” said Preston Keat, director of research at Eurasia Group, a political consultancy, in London. “Portugal and Spain are already facing pressures in the markets.”

Six months after the Greek rescue exposed flaws in the euro’s makeup and fueled doubts whether 16 countries belong in the same currency union, policy makers again found themselves meeting on Sunday in Brussels racing to calm markets.



Read more: http://www.bloomberg.com/news/2010-11-29/ireland-s-eu-financial-rescue-fails-to-stem-contagion-as-spain-bonds-drop.html

[goforit]

1. Wow!!!....A sinking ship.

[dixiegrrrrl]

2. Many people predicted this would happen even BEFORE Greece.

Yet the damn fools keep doing the same thing over and over and over again.

And we ARE in line for the same thing, it is inevitable, no matter how much The Ben Bernak wants to pretend otherwise.

[JDPriestly]

3. Let's see. If you had a trade surplus and wanted to destroy the German economy in particular

and the European economy in general, what would you do?

[Javaman]

4. ruh roh...nt