The Reasoned Review

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European Union Debt Crises: Ireland Next

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Bloomberg reports that Ireland banks need a $43 billion dollar bailout due to “appalling” lending practices, using the same Wall Street “financial innovations” that got Greece into so much trouble:

“Our worst fears have been surpassed,” Finance Minister Brian Lenihan said in the parliament in Dublin yesterday. “Irish banking made appalling lending decisions that will cost the taxpayer dearly for years to come.”

Dublin-based Allied Irish needs to raise 7.4 billion euros to meet the capital targets, while cross-town rival Bank of Ireland will need 2.66 billion euros. Anglo Irish Bank Corp., nationalized last year, may need as much 18.3 billion euros. Customer-owned lenders Irish Nationwide and EBS will need 2.6 billion euros and 875 million euros, respectively.

Greece wasn’t the first European country to go under, and it sure as hell wont’ be the last. After Ireland goes, Italy, Portugal, Spain, or even “Great” Britain are all worthy candidates for the next European collapse.


Written by pavanvan

March 31, 2010 at 6:52 pm

Posted in Economy

Tagged with , ,

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