Tuesday, November 16, 2010
Is Eurozone heading for triple meltdown again ?
News stories and podcasts are very much focussed on happenings in Ireland and the reluctance of the Irish to accept an EU bailout except on their terms. In many of the stories, the subject of Greece often comes up, and we are reminded that that particular problem was very recent and still hasn't actually gone away. European bond markets are reacting badly to the news, which threatens to drag Portugal and Spain into the mire. The PIGS have long been identified as the EU's biggest problems, and it now seems likely that they could all be the receivers of some kind of bailout. Ireland could have a big knock on effect in the UK, as it seems that much of the debt of Irelands banks is held by UK institutions, so the debt malaise could spread.