Ireland Asks EU For Bailout

What happens when markets are interferred with? Like when ‘too big to fail’ becomes the excuse to fake a ‘market correction?’ In our case, we see how well that worked out. It hasn’t. Instead, what it has done is cripple the markets, paralyze investement and economic growth.

Ireland has been brought to the brink of bankruptcy by its fateful 2008 decision to insure its banks against all losses – a bill that is swelling beyond euro50 billion ($69 billion) and driving Ireland’s deficit into uncharted territory.

Economists question whether the economies of Ireland, Portugal, Spain and Greece will grow sufficiently to build their tax bases and permit them to keep financing, never mind paying down, their debts.

Unfortuanetly for Ireland, they bought in to that same excuse. Problem for them is, with their much smaller economy, the consequence is more severe. Ireland, Portugal, Spain and Greece are all in the same boat. Hit with the financial perfect storm of unsustainable social welfare economies and handicapped free-markets, the European dominos are all in line to fall.

Link: Ireland swallows bitter pill, asks EU for loan

UPDATE: 11/23/2010 In European Debt Crisis, Some Call Default Better Option

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