Ireland Is Getting Pummeled, Again

The Irish are in desperate need of a bailout...

The endgame for Ireland is at most a week away: outcome is simple - bailout or failure. One wonders which the central bankers will pick...

• Honohan: IMF Package Would Look Same As Current Policies
• Honohan: Irish Bank Borrowing From ECB Exceptionally Large
• Honohan: ECB Would Like Irish Banks To Get Back To Self Reliance.
• Honohan: ECB Won't Curtail Irish Banks' Access To Financing.

The Irish Bunds spread has now surged to 631, +64 bps on the day!

Seems like the Irish aren't the only ones with issues either -

A group of demonstrators broke into the headquarters of Britain's governing Conservative Party in London Wednesday, spray-painting anarchy symbols and setting off flares before being forced out of the building.

They went on to set fires outside the building.

The old black bloc anarchist trick again? That is definitely getting old.

The Real Effect
This will mean that the dollar will rally for a time, like it did back in May during the initial European crisis as investors take flight to safety. (Relative) However, this is somewhat meaningless as the overall general trend for the dollar is down, not up and the price of commodities are going up not down.