Catallaxy Files (Australia)
"..Karen Maley over at Business Spectator, however, has an interesting article on the most recent developments in Ireland, which include a marked spiking in the yields on Irish government bonds. A prominent Irish professor of economics is arguing that the country is in effect bankrupt because the capacity of the taxpayer to fund the bail-outs of the three big Irish banks, that are extremely exposed to the ailing property sector, is insufficient to meet the calls at the higher yields. (I’m not sure he is correct to recommend that that the Irish government should have allowed those banks to fail, in effect, however.) Fiscal austerity will not be enough.
Is it time for the IMF to come in to sort out the mess? And I’m not so sure now that the Celtic experiment will have been worth the candle."
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