Trouble in European Paradise…
The ECB and IMF would really like Ireland to stop this nonsense and take the money to bailout the bankers and implement austerity measures in exchange (great deal!). The Irish Times this morning was stating that PM Cowen was still opposed to a bailout. Mind you this is politics.
Meanwhile in Austria, they confirmed they are withholding 190 billions euros – their tranche in the Greek Rescue Fund – because they want to see how Greece can come up with the money through taxes. Greece was not able to demonstrate that it was able to do this. Big surprise here. Now on to the next defector: Finland is now opposed to the Irish rescue. Finland does not have a banking system on life support so it does not appreciate subsidizing reckless spending and debt in other EU countries. Of course those are small countries but it is indicative that all is not well in the kingdom (of Denmark!).
When Greece went almost bust in May – they got a $150B US bailout. The talk now for Ireland and Portugal are in the range of $160B US. The US was on the hook for 20% through the IMF for that deal (+ Fed swaps line). With the new guys in town (read the Tea Party) – I wonder how rescuing Europe will be welcomed this time.