By Tyler Durden | 17 September 2010
And the euro seemed so happy after its recent surge, that it completely forgot it is backed by an insolvent continent. Luckily, here's Ireland to remind us stuff is much, much worse than expected. According to the Irish Independent, the Labour Party's Eamon Gilmore, came very close to suggesting that Ireland is considering defaulting on its debts "when he talked about the Government 'negotiating' with the bondholders in the Anglo Irish Bank."
The same newspaper also reported that Ireland is on the verge of calling in the IMF for a 'bailout', citing "a report from Barclays, one of Europe's largest banks, [which] said Ireland may yet need financial help from the IMF or the EU if conditions got any worse". But a spokesman for Finance Minister Brian Lenihan said last night: "The Government's strategy for dealing with the economic and financial challenges has been commended by the EU Commission, the European Central Bank and many other international experts". In other words, domino #2 has at most a few more days. Net result of all this: Irish-Bund spread explodes and gold hits a new all time high of $1,282.
More from the Independent:
Lehman déjà vu.
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