Rumors of an Irish bailout package is helping soothe market fears over a potential disaster in Ireland. I hope the people of core Europe are ready to pay for the periphery deficits for the coming few years because that’s essentially the precedent being set here. Great for market stability, bankers and bondholders. Bad for everyone else. Via MarketWatch:
“Bailout rumors, subsequently denied, and reassurances by European Union officials that Irish debt holders wouldn’t be required to take writedowns saw Irish government bond yields fall Friday in volatile trade.Traders said rumors of an €80 billion ($109.1 billion) bailout plan made the rounds in European trade, helping to lift the euro and sending Irish bond yields lower.
“The rumor in relation to the €80 billion bailout is untrue,” a spokesman for Ireland’s finance ministry told MarketWatch. The European Commission has received no request from the Irish government for any financial support, a spokesman for the commission said, according to Dow Jones Newswires.”