Ireland Is In Serious Trouble

Of course the solution will be to kick the can down the road -

In a front page story on Monday "The New York Times" is reporting that Ireland’s debt woes have “stoked fear that it might even need to follow Greece and request a bailout from the European Union and the International Monetary Fund.”

Such a move could "do lasting damage to Ireland’s credit standing.” The Times says.

In a story entitled “Irish debt woes revive concern about Europe” the newspaper reports that the Irish bond market already in free fall plunged further after the government announced massive new spending cuts.

The Times stated that “Investors took it not as a sign of resolve but rather of Ireland’s desperation and uncertainty about the true extent of its problems.”

They noted that the yield on Ireland’s 10-year bond climbed to 7.6 percent on Friday, opening a huge gap on the 2.5 percent interest rate on comparable bonds issued by Germany.

“The scale of the deficits are just so big,” said Philip R. Lane, a professor of international economics at Trinity College in Dublin., The Times notes that Ireland has “enough cash on hand to allow it to finance government operations through June 2011.”

The Real Effect
You mean borrowing more money didn't work? NO WAY!?! Well perhaps if we try it again it will this time!

Of course, we examined this back in February before the issues with Greece were prominent.

I do know that Greece's woes are going to blow out into the eurozone specifically Spain, Portugal, Italy and Ireland as they are all big holders of Greek bonds. This in turn will cause their economies to suffer as the fallout becomes contagious. Yet America plugs along, content to repeat these mistakes as we "integrate" and "harmonize" our way into oblivion.