Ireland's huge bailout brings the country only brief respite

[CHIMO]

We know now what €100bn buys you these days. It buys you a rally that lasts a morning. Then the selling resumes.

Last night's announcement that Ireland was seeking a bailout from the International Monetary Fund and the European Union was supposed to be the moment the policymakers fought back against the bond traders.

News of the emergency package was supposed to boost confidence that Ireland could pay its way in the world and provide enough capital to resuscitate its zombie banks. It was supposed to provide a firewall that would prevent the crisis spreading to other weak members of the eurozone.

Secondly, Osborne is rightly fearful about the impact of Ireland on the British banks and the UK economy more widely. UK banks have £150bn of exposure to the Irish banking system, much of it to the construction and housing sectors. Finally, a point seemingly forgotten in recent months – this was a crisis caused by bankers not public servants.
http://www.guardian.co.uk/business/2010/nov/22/larry-elliott-ireland-bailout-brief-respite

[DJ13]

1. These bailouts are nothing but ransom payments

The big banks went overboard with speculation, seeking the easy money so they now find themselves in dire straights as a result, which now has the bond traders pushing governments into rescuing those banks........

And just who are the bond traders who are pushing for the rescue of the big banks?

The same big banks who's speculations led them into near insolvency.

Must be nice to wield that much influence.

[girl gone mad]

2. Despite the promises..

Ireland could very well default.

An austerian death spiral, à la Greece, in the name of saving banker skin is a tough sell these days.