Below are some links related to Ireland Crisis
- Dublin is facing huge pressure from the financial markets
"There is a problem with liquidity in banks, there is no doubt about that, but I don't think that the appropriate response to that would be for European finance ministers to panic.European Central Bank vice president Vitor Constancio has also been talking this morning, just before he headed off to Brussels. Constancio argued that Spain and Portugal might still be secure, even if Ireland does buckle. Quotes via Reuters:
"Ireland doesn't need to trigger any mechanisms because of sovereign debt and the problems in banks are being dealt with."
There is no necessary link in this respect. All situations are different from each other...it depends of course on market developments, which cannot be predicted," he said.
"Several countries have been under some pressure from the markets, that is well known. But as you have seen, there are differences. The market really discriminates (between) the different situations that exist."
In the bond markets, the yield (or interest rate) on Irish government debt has leapt again to 8.542%, up from 8.17% overnight. That's a clear sign that the markets are more concerned about the possibility that Ireland will restructure its debt, or even default.
With Ireland's economic crisis centre stage, look at the characters involved in bringing Irish banking to its knees
This is a very interesting editorial in the FT, which says that the root of the problem in Ireland is the government’s total commitment to bank bondholders, which translates into a total risk for the taxpayer. Unless the Irish government changes that, its sovereign bonds will be under pressure.