Strap in! It's going to get Wild....
http://www.telegraph.co.uk/news/worldnews/europe/…
Ireland bail-out: British banks hit as Irish rescue falters
The share prices of Royal Bank of Scotland and Lloyds fell sharply as stock markets took fright at the political chaos engulfing Dublin.
It had been hoped that the £70 billion bail-out agreed between Ireland, the European Union and International Monetary Fund would ease investors' fears over the eurozone economies.
But within hours of the Irish government admitting it needed help, the Green party – on whom Prime Minister Brian Cowen relies for support – called for a general election by the end of January.
The suggestion prompted a fall in the value of the London stock exchange and the euro and a rise in the cost of borrowing for both the Irish and Spanish governments. The head of the eurozone warned that "crazy" market speculators could turn on Portugal and Spain next.
So what are peoples' bets? Will contagion spread or will the Irish capitulate to EU demands? Will the EU make Irish loans punitive to whip the Spanish? What will happen to Irish corporate tax rates?
Find out on the next episode of WORLD ECONOMY DECIMATION!
1.) We've been through this before. CC: 2008. Perhaps the end of banking as we know it, but not the end of the world.
2.) Contagion can spread fast, but US investors are a lot less leveraged than they were in 2008. I think the response will not be anywhere near as panicked in the US. There's simply less money to pull out of the stock market and the consumer is in better fiscal shape.
3.) Make sure you've got an 8-month emergency fund. Especially if you work in banking.
Yeah, but what happens if the euro zone falls apart? And I mean really apart, no more euro...... Weird to think about, but it might happen.
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