Ireland may need IMF bailout says N.Y. Times - says scale of debt is massive

Posted on Monday, November 08, 2010 at 07:33 AM

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In a front page story on Monday "The New York Times" is reporting that Ireland’s debt woes have “stoked fear that it might even need to follow Greece and request a bailout from the European Union and the International Monetary Fund.”

Such a move could "do lasting damage to Ireland’s credit standing.” The Times says.

In a story entitled “Irish debt woes revive concern about Europe” the newspaper reports that the Irish bond market already in free fall plunged further after the government announced massive new spending cuts.

The Times stated that “Investors took it not as a sign of resolve but rather of Ireland’s desperation and uncertainty about the true extent of its problems.”

They noted that the yield on Ireland’s 10-year bond climbed to 7.6 percent on Friday, opening a huge gap on the 2.5 percent interest rate on comparable bonds issued by Germany.

“The scale of the deficits are just so big,” said Philip R. Lane, a professor of international economics at Trinity College in Dublin., The Times notes that Ireland has “enough cash on hand to allow it to finance government operations through June 2011.”

But the paper says that Ireland may become the poster child for the fact that even drastic measures by European countries will not solve their long term debt problems.

Despite praise for Ireland’s austerity program the Times says Ireland badly underestimated the extent of the debt problem.”

“But as the full extent of the banking and real estate bust became evident, it was clear that the government of Prime Minister Cowen, (pictured),which has been in power since the onset of the crisis more than two years ago, had underestimated the cost of fiscal recovery."

The Times notes that the International Monetary Fund argued that the increasing debt ratios among advanced nations needed to be addressed.

The paper noted that the leader in such debt is Ireland, whose “debt level has almost doubled, to nearly 100 percent of G.D.P.”

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downinthebasement | Nov 13, 2010, 08:08 PM EST

squirrel, are the Rothchilds responsible for the perversion in your church?

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downinthebasement | Nov 10, 2010, 12:20 AM EST

rebel force...why do you think the Old Gray Lady is anti-all those things?

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squirrelhunter | Nov 09, 2010, 04:06 PM EST

Rothschild Bankers funded WW II Germans and Allied Bankers via B.I.S. in Basel Switzerland transferring funds the entire war between Nazi Deutch Bank and UK Bank of England extending it. War could have ended 1-2 years but Germans Printed Debt Free Currency and Tossed Rothschild Bankers out of Germany so they firebombed all Germans and never bombed factories to extend war 5 years to kill all Germans so no more "Banking Problem Children" left living. Read Old book With The New Financial Way to rid parasite Interest Banking here: http://www.filefactory.com/file/b422gc9/n/ndcic.pdf Oh and they invented Interest banking 800 years ago in Italy and Arab Sharia Law forbids Interest Banking so we been shooting Arabs last 800 years too. Oh and don't count on the Police or Homeland Security to help with this Mafia, as they are paid to protect the government from you after you see this next video showing CIA and Police bring Coke into the USA Cities: http://www.filefactory.com/file/b42304b/n/crackthecia.wmv

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Strongbow | Nov 08, 2010, 08:25 PM EST

Ireland needs to attract foreign capital by selling guinness to the 1.2 billion chinese. we should have patented and marketed our oft-vaunted hospitality geniality and "gift of the gab" years ago.

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sirpeter | Nov 08, 2010, 05:14 PM EST

HA HA HA..Georgedildo needs help really bad,It's the voices in his head making him write his sh*t.Immigrants from Angola.HA HA HA.Your original.i'll give that much.

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jimmy12003 | Nov 08, 2010, 03:47 PM EST

we will have no choice but to let them take over, for an educated people, its so hard to believe we listened to that rotten cu-nt bertie ahern and let he run this country into the ground

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irishfez | Nov 08, 2010, 02:48 PM EST

The NY Times hates Ireland, like GeorgeDillon does

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FastEddy | Nov 08, 2010, 12:26 PM EST

Every IMF bailout requires an huge tax hike. Check it out. If you want more business, more jobs, more tax revenue in Ireland, keep the taxsuckers at the IMF out of your pockets.

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Searlit | Nov 08, 2010, 12:00 PM EST

The way that the Irish leader is reacting to the banking and real estate bust, reminds me of a teacher who punishes the whole class for the misdeeds of a few. It's time to worry about your country and your people, not your country's credit score.

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GeorgeDillon | Nov 08, 2010, 11:03 AM EST

The Irish taxpayer is paying hundreds, if not thousands of millions to provide welfare for immigrants from places like India, Angola, pakistan etc. and to give free education, including free English classes, to the children of these immigrants. It's insanity Irish-style.

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brennanirish | Nov 08, 2010, 10:07 AM EST

How many iterations of this same story can the Times write....and this website post. Tomorrow we'll have to hear what paul krugman has to say on the topic....again. We know already, but thanks for your continued reporting on the matter.

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Rebelforce | Nov 08, 2010, 09:42 AM EST

If there is anything negative to write on Ireland, the Irish or Catholicism, you can bet the "Old Gray Lady" will be there to publicize it.

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