Sunday, November 28, 2010

Government bonds: A coinage debased

Wall Street Journal
November 27, 2010

European finance officials set the stage for an Irish aid package they hope to complete Sunday, betting that billions of euros for the country's beleaguered banks and strained public finances will restore calm to the euro zone.

But they struggled to rise above broad fears that the debt crisis has already trampled Ireland on its way to Portugal and even Spain—the euro-zone's fourth-largest economy, representing about 10% of the currency bloc's economic activity.

"It's absolutely, completely false," European Commission President José Manuel Barroso said, echoing assurances from Berlin, Lisbon and Madrid that officials hadn't already moved on to Portugal or its much larger neighbor. "It has neither been asked for and neither have we suggested it," he said.


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