EURO CRISIS ACCELERATES: Markets shun Portugal, Spain, Belgium and Italy

November 30, 2010

Analysis: Is the euro zone running out of time on debt crisis?

By Luke Baker

BRUSSELS | Tue Nov 30, 2010 7:51am EST

BRUSSELS (Reuters) – The euro zone debt  crisis is moving at a such a pace, with pressure now mounting on several countries simultaneously, that European Union institutions may find it impossible to get ahead of the markets.

After Greece‘s deficit and debt problems emerged in late 2009, there were five months of steadily rising Greek sovereign bond yields and efforts by EU officials to contain the threat before a 110 billion euro ($140 billion) bailout was arranged.

The lag was understandable because the EU had never had to deal with such a crisis since the euro’s introduction in 1999. Once a rescue mechanism was agreed for Athens, it was only a matter of days before the funds were disbursed.

In the case of Ireland, it took weeks of market pressure driving bond yields higher — with the spread over German bunds widening — before Ireland requested help, an EU-IMF team was dispatched, and an 85 billion euro bailout was assembled.

But now financial market pressure is being brought to bear on Portugal, Spain, Belgium and Italy all at once.

Read more at:

Portugal in line for next bailout as debt default indicators soar

November 30, 2010

EU Faces More Bailouts as Euro Contagion Spreads to Portugal: Euro Credit

By John Fraher and James Hertling – Nov 30, 2010 10:20 AM GMT+0100

Investors’ attention will soon turn to the European Central Bank, whose Governing Council will decide on Dec. 2 whether it can afford to stick to a plan to withdraw emergency stimulus at the start of next year. Photographer: Hannelore Foerster/Bloomberg

The failure of the Irish rescue to stem a selloff across euro-region bond markets may spell more bailouts to come, starting with Portugal. Read the rest of this entry »

Lame Irish government bowed to ECB, says Peter Mathews

November 30, 2010

Hat’s off to Germany’s Chancellor Angela Merkel for telling the banks the truth: the German people can’t pay and they won’t pay the eurozone’s gigantic, fractional-reserve bank debts. The Irish government very cheerfully sold its people into perpetual debt slavery under the IMF and EU without batting an eye in scenes worthy of Shakespeare.

The Irish Times – Tuesday, November 30, 2010

Lame team failed to point finger back at ECB


OPINION: The ECB is 50 per cent culpable, but we are to pay 100 per cent of price

THE GOVERNMENT has signed us up to a bad deal. The European Union and the European Central Bank (ECB) have stitched us up. The taxpayer is now being forced to repay money to the European banking system as well as the Irish banking system because of policies implemented by the Government, by people who frankly don’t know what they were about and haven’t the wit to learn from those who do, even when it’s clearly and comprehensively explained to them.

Read more at:

Spain and Italy sucked into whirlpool of euro’s collapse

November 30, 2010

Euro drop, rate rises spread eurozone drama to Spain, Italy

MSN news

The euro plunged and eurozone debt pressure rose again on Tuesday amid warnings that pricing eurozone debt is now so risky that funds may desert countries exposed after Ireland, such as Portugal and Spain. Read the rest of this entry »

Euro crisis reaches German bunds: “death spiral of the eurozone,” says trader

November 30, 2010

EURO GOVT-Bunds higher, periphery in firing line

LONDON | Tue Nov 30, 2010 2:07am EST

LONDON Nov 30 (Reuters) – German government bonds opened higher on Tuesday, supported by concerns about the euro zone‘s debt crisis after an 85 billion euro rescue package for Ireland failed to stop the rot in peripheral bond markets. With the market quickly switching its attention to the question of who’s next, Portugal and Spain came under pressure on Monday and a lacklustre Italian auction further reflected the concerns. Italian and Spanish 10-year yields posted their biggest daily rises in more than a decade.

“It could be the death spiral of the euro zone. The way Spain, Italy and Belgium got attacked yesterday was brutal,” said a trader.

“Volumes were thin, but they were all one way.”

Read more at:

Eurozone economic fundamentals point to break up

November 30, 2010

Splits in Euro Zone Emerge Amid Debt Crisis


Published: November 29, 2010

BRUSSELS — Even as Europe struggles to contain its latest debt crisis, fresh fissures are emerging that show the euro zone diverging into two — or even three — different economic parts that threaten to compound the problems even further. Read the rest of this entry »

MONDAY VIEW: Why Germany must face up to a potential euro breakup, from the Daily Mail

November 30, 2010

By David Marsh
Last updated at 4:20 PM on 29th November 2010

As the crisis deepens over the future of the euro – or whether it even has a future – two contrasting sides of Germany have been put on display.

On the one hand sit people such as Hans-Dietrich Genscher, foreign minister in the 1970s and 1980s and one of the spiritual fathers of European economic and monetary union (EMU).

At a ceremony in Dresden last week to mark 20 years of German unification, he called for more solidarity from German tax-payers for hard-up members of the euro such as Ireland, Greece and Portugal.

Read more at: