"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Saturday, November 13, 2010

Ireland - The Next Euro Crisis Unfolds

From the BBC:

Ireland 'in preliminary talks with EU on bailout'

The Republic of Ireland is in preliminary talks with EU officials for financial support, the BBC has learned.
It is now no longer a matter of whether but when the Irish government formally approaches the European Financial Stability Fund (EFSF) for a bailout, correspondents say.

The provisional estimate for EFSF loans is believed to lie between 60bn and 80bn euros ($82-110bn; £51-68bn).

Dublin says there are no talks on an application for emergency EU funding.
The European Commission would not formally comment on the matter.

Eurozone officials told the Reuters news agency on Friday that discussions were under way, with one saying that it was "very likely" Ireland would receive financial assistance.

The head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, said on Saturday that it had not been asked for aid.
Full Article HERE.

I'm not surprised, but I'm going to hold off on commenting until more info is forthcoming.  I'm guessing  better information will be out before markets open Monday morning.  But earlier today from Bloomberg:
The International Monetary Fund stands ready to help Ireland if needed, its managing director said, as market concern about the country’s debt crisis continues.  LINK
If I remember correctly, the larger EU member states dragged their feet and then argued while handling the Greek crisis ealrier this year.  We'll see how they handle this one.

No comments: