Irish, Portuguese bond yields soar amid bailout speculation

myp · Nov 10, 2010

Irish and Portuguese bond yields soared yesterday after worries that defaults were possible and that the EU might have to bail out more countries than just Greece. The EU took the hit against the USD and Germany and France continue to look to bondholders to help pay the burden of bailouts.

obtuseobserver · Nov 11, 2010

There's a reason the term PIIGS has currency

myp · Nov 12, 2010

...and now a bailout plan has been created by the EU/IMF that contains no restructuring options for Ireland. Once more the taxpayer will foot the bill. The streets will see even more action after all this...

David · Nov 13, 2010

myp said:
...and now a bailout plan has been created by the EU/IMF that contains no restructuring options for Ireland. Once more the taxpayer will foot the bill. The streets will see even more action after all this...

I don't mean to sound like a doom sayer but if the West doesn't get it's act together we're going to go from prosperity to post-apocalyptic hellhole (just look at Detroit).

Major financial reforms are needed and I fear political ass watching will prevent those changes. Nobody wants to do what's needed long-term because short-term, it'll cost them re-election.

myp · Nov 13, 2010

David said:
I don't mean to sound like a doom sayer but if the West doesn't get it's act together we're going to go from prosperity to post-apocalyptic hellhole (just look at Detroit).

Major financial reforms are needed and I fear political ass watching will prevent those changes. Nobody wants to do what's needed long-term because short-term, it'll cost them re-election.

Well of course that's the case. That and this ludicrous idea that government stimulus can create prosperity. Keynesianism is dying before our eyes, but unfortunately it might not be completely gone until we have one last big disaster.

obtuseobserver · Nov 13, 2010

myp said:
...and now a bailout plan has been created by the EU/IMF that contains no restructuring options for Ireland. Once more the taxpayer will foot the bill. The streets will see even more action after all this...

there have been some good articles lately on the problem in Ireland. Apparently the bubble bursting there is an almost pristine textbook case of exactly what not to do... many touch on a wide array of issues including a nearly manic drive amongst many Irish to own land at any cost.

obtuseobserver · Nov 13, 2010

myp said:
Well of course that's the case. That and this ludicrous idea that government stimulus can create prosperity. Keynesianism is dying before our eyes, but unfortunately it might not be completely gone until we have one last big disaster.

The Japanese demonstrated two decades ago that was already long dead.

Krugman is one of the very few still holding on and the longer he does the less credible he becomes.

myp · Nov 13, 2010

obtuseobserver said:
there have been some good articles lately on the problem in Ireland. Apparently the bubble bursting there is an almost pristine textbook case of exactly what not to do... many touch on a wide array of issues including a nearly manic drive amongst many Irish to own land at any cost.

Yep, their real estate issues are pretty deep- much like ours.

obtuseobserver said:
The Japanese demonstrated two decades ago that was already long dead.

Krugman is one of the very few still holding on and the longer he does the less credible he becomes.

Unfortunately Japan is "explained" by the Keynesians as an example of where too little spending led to what happened. I am afraid it will take something huge to get them to finally realize and if they keep implementing their policies they'll be the ones to take us to that something huge.

obtuseobserver · Nov 13, 2010

myp said:
Yep, their real estate issues are pretty deep- much like ours.

their bubble was smaller and bigger to borrow a phrase from one article...

smaller in total dollars but bigger as a rate of GDP... greater statewide impact

myp said:
Unfortunately Japan is "explained" by the Keynesians as an example of where too little spending led to what happened. I am afraid it will take something huge to get them to finally realize and if they keep implementing their policies they'll be the ones to take us to that something huge.

Too little? Ten years worth of it? Debt at nearly 200% of GDP? This is why the Keynesians are laughed at.

Irish, Portuguese bond yields soar amid bailout speculation

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