Borrowing costs for Portugal, Ireland and Greece have hit highs amid concern that Europe will not take action to dispel fears of sovereign defaults. Long term rates for Spain came close to setting a record and Italy’s cost rose above 5% for the first time since 11/08. Portugal was forced to pay a much higher premium in an auction on Wed. Greece and Ireland, which are both being bailed out by the EU-IMF have seen dramatic rises too.
Tag Archives: Ireland
Irish Elections
Yesterday Ireland held elections; Fianna Fail (FF) lost to Fine Gael & Labour (FGL). When the Irish economy tanked in ‘08 FF had the government guarantee all bad bank debt; a dreadful decision resulting in a $93 billion bailout and a painful austerity program. FGL promises to renegotiate it all. This may cause a Euro crisis like the one last spring which hurt US growth and added to stability.