Ireland Given 24 Hour Ultimatum To Take Bailout Or Be Responsible For Pan-European Contagion

Tyler Durden's picture

Domino 2 is done. Europe's banks are about to be rescued again as Europe's taxpayers foot the bill. In other news, former SAC star money manager Ron Insana says Ireland does not seem to be that much of an issue.

From the Guardian:

An increasingly isolated Irish government was coming under mounting pressure tonight to seek a European or International Monetary Fund bailout within 24 hours amid fears that contagion from its crippled banking sector might spread through the weaker eurozone countries.

Portugal, Spain, the European Central Bank and opposition parties all urged Brian Cowen's coalition government to remove the threat of a second crisis in six months by putting a firewall between Ireland and its partners in the 16-nation single currency.

With finance ministers from the eurozone due to hold emergency talks tomorrow night, financial markets were expecting Dublin to finalise negotiations with the EU over the terms of a deal to allow Ireland to rescue banks laid low by the collapse of the country's construction boom.

"The Irish problem is spreading, but it could get more volatile," said Ashok Shah, chief investment officer at London Capital, a fund management firm. "They have to get this bailout, they have a period of time before it gets impossible, before nasty things happen. The longer they leave it, the more difficult it will get."

Portugal has seen its borrowing costs rocket along with Ireland's as speculation has grown that it too may have to consider a bailout. Its finance minister, Fernando Teixeira dos Santos, told the Wall Street Journal his country had been hit by a contagion effect caused by fears about Ireland's ability to pay its debts.

"I would not want to lecture the Irish government on that," he said. "I want to believe they will decide to do what is most appropriate for Ireland and the euro. I want to believe they have the vision to take the right decision.

Continue reading here.

And some other front pages for tomorrow:

h/t @Lizzie363

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John McCloy's picture

  The Irish are proud.Let's hope they tell the ECB, IMF, Fed and bankers to kick rocks.

Meanwhile here are the current Time Person of the Year Results:,28804,2028734_20290... you can see Lady Gaga  & Jon Stewart rocking the vote...Why is Tyler not nominated?

docj's picture

+1  Let's all hope for the best here.

I'm not Irish, but were I my answer would be a hearty, brogue filled, "F*CK YOU!!!!!" to the banksters.

John McCloy's picture

  The I.R.A. already stated their position on how they perceive the bankers

Sabibaby's picture

They're saying what everyone's thinking (or has thought for a long time now)

barkster's picture

Ireland should stand with Iceland!

Ragnarok's picture

A little music perhaps:


Flogging Molly - What's left of the flag


Dropkick Murphys - Fields of Athenry

Vampyroteuthis infernalis's picture

I dig Flogging Molly and the Dropkick Murphys, but they are actually American bands.

erik's picture

Flogging Molly's lead singer and songwriter is from Ireland.  They are the greatest live band going right now.

macholatte's picture

OK!  Game on!

Let's hope they get it right, do a little ZH and You Tube research, and leave the branch managers and assorted low level workers alone.

The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally.
Carroll Quigley

LeBalance's picture

Carroll doesn't tell the whole story, the banks already own the governments, business, and the people.  They are telling the same what to do.  The hand ringing by policy hacks is to make it seem that there is an alternative and that "freedom" exists.

It does not, slavery exists.

JLee2027's picture

It's not nice to be owned and not even know when you were bought or who sold you.

stewie's picture

No-one is more hopelessly enslaved, than the one who falsely believe he is free.


BigJim's picture

So why isn't gold going apeshit on news like this?

Strange times.

nuinut's picture

Because that ain't the price of gold you're looking at, it's the price of paper gold.

TwoShortPlanks's picture

Ain't that the damn truth!

"If War is an extention of Politics by other means then, Politics is an extention of Economics by other means and further, Economics is an extention of Servitude by other means."

Fred Hayek's picture

My mortgage comes to mind.

samsara's picture

Thanks for the quigley quote.  I've quoted a few of his myself.  He laid it out. (then taught Bill Clinton)

Al Gorerhythm's picture

"Having flirted with insolvency until it was rescued by the International Monetary Fund and EU in May, Greece on Monday sought to reassure its partners that despite the latest figures, it remained on course." 

Rescued!  Rescued? HA!  All their problems were solved by offering them more debt?!!

Greece admits breach of bailout terms as audit begins.

New_Meat's picture

Totally OT:  Your handle reminds me of an old Bob Metcalfe joke.  Searching...dang, Google has it:

"Some people laugh off Gore's claim to have invented the Internet.  But I'll have you know, to this very day, the internet runs on many of its original ALGORithms."

- Ned

Al Gorerhythm's picture

Let it be known that the imposter, Algorithm, is no relation of mine. When it comes down to relatives, he does not fit into the equation. DNA evidence of his claim to blood ties does not add up.

ebworthen's picture

Don't forget that billions upon billions of our tax dollars go into the IMF as well!!!

HellFish's picture

Freakin sweet.  I'm impressed.

hedgeless_horseman's picture

My prayers and hopes are with the people of Ireland. 

Fuck the banks...socialize the losses amongst their collective arses.

mikla's picture


We *LOVE* the Irish and stand with them in this time of trial.

To save their souls from an eternity of Indentured Servitude, they should reject any offers from the IMF.

MaldelBot's picture

Why? It worked so well for the Baltics.


:::falls to knees:::



SheepDog-One's picture

OH, so the EU is trying to pin it ALL on Ireland? What about France, England, Portugal, Spain, Greece? Theyre all OK now? Patently ridiculous...if I were Ireland I'd certainly tell them to go to hell.

LeBalance's picture

Tonight is an "I" night, the rest of the bankrupt alphabet will wait in the wings to "surprise" you (scary!) tommorrow!

Short term memory and all that.

Fred Hayek's picture


The irish should realize.  It's not they who have no leverage, who have to come begging.  They have ALL the leverage.  How many British, German and French banks would be fucked if the irish default or even force big haircuts on bonds?  And what would that do to those countries' economies? 

If Ireland had baseball player agent Scott Boras representing them here they'd come away owing 25% of what they seem to owe. 


tickhound's picture

The Irish should take the bailout... Haven't they heard the age old American adage "the more you owe, the more you're worth?" 

Village Idiot's picture

"I'm not Irish, but were I my answer would be a hearty, brogue filled, "F*CK YOU!!!!!" to the banksters."


There's a song for that.  Hasn't been posted in a while, but so fitting. Click on the link and select song - "FUCK YOU",fuck-you-official-video_16.htm?loc=

Eternal Student's picture

No, no, no! Saying FU to the banksters is the wrong approach at this time!

If there were a shred of truth to what the banksters are saying, the correct approach would be to say: "Fine. We'll take your money. No problem. But it's on OUR terms and not yours. 0% interest. Take this offer, or you Bankers be the ones responsible for contagion".

Which is a different way of saying F U. But a heck of a lot more profitable, and much better spin.

OldTrooper's picture

Kinda like paying your bankruptcy lawyer with a credit card.  There's some appeal to it.

caconhma's picture

At the end, like always, Germany will lose.

M.B. Drapier's picture

Whatever about the Irish as a whole, our political leaders are craven. Watch them sign up to this piece of work.

myztix's picture

Looks like financials is the play for tomorrow.

Cleanclog's picture

Irish Times reported last week that when the Irish banks can find someone to "lend" to them as in buy bonds, it is at a rate of at least 8%.  Meanwhile, they lend mortgages at 5% so as not to have housing prices fall further.  

Really? A 300 bp differential the WRONG WAY?  And the ECB has been "supporting" the Irish banks and Irish bonds so the UK, French and German banks don't have to take losses on their bondholdings.  

So F-U taxpayers - the bondholders are saved and you get to foot the bill.  

The sequel will be coming to a theater near you soon enough.

FunkyMonkeyBoy's picture

Banksters blackmail.

John McCloy's picture

What happens when people tell the banksters to go fuck themselves and the world does not end? Check with Iceland.

JLee2027's picture

They are still owned by the banks...

15 NOV, 2010, 02.08AM IST,AGENCIES 

The International Monetary Fund said Sunday it planned to release the fifth installment of an Iceland aid package late this year or early next year, noting the country's economy was further stabilizing (bullshit).

MayIMommaDogFace2theBananaPatch's picture

Mishkin notes discrepancy: proper title is

IMF Plans Fresh Iceland Aid says Economy Instabilizing [sic]

Bonesetter Brown's picture

So is the ECB's message basically, "Sovereigns, one-at-a-time now, please get under our thumb, so that when this finally blows containment, we will at least have as many of you under our thumb as possible to 'help us out' when we get there?"

Default is not the problem, default is the solution.


zelter's picture

Default is not the problem, default is the solution.


I hope they really do it and save the whole of Europe while at it.

Rainman's picture

When/If the Irish hold a burn the mortgage party, Californicators can't be far behind. CMF crushed today.

I am more equal than others's picture

Take it or you have to eat Haggish.....yum

goldmiddelfinger's picture

Haggis is the reason chickens have no lips.