Let's Talk About EU, Man..

Irish bailout 'stuns' experts The €35bn (£29.8bn) going into Ireland's banks shocked experts, who feared bailout might or might not help Ireland, but in any case might not contain contagion elsewhere in the eurozone.

Brian Lucey, associate professor of finance at Trinity College Dublin was "stunned" at the cash poured in: "We've already put at least €32bn into them, so that's going to be €67bn, which is 50% of GNP, that's a world record". He also warned that a new government next year could rip up the deal. "Sovereign governments have a right to effectively do whatever they want," he said.

Portugal's still feeling the heat.. Portugal's high debt burden remained a concern for the eurozone and financial markets on Monday, a day after European Union countries endorsed a plan to help Ireland with its ailing finances.

Officials in the 16 nations using the euro currency had hoped Sunday's agreement to give euro67.5 billion ($89.4 billion) in loans to Dublin would check the spread of investor jitters to other fiscally vulnerable members of the bloc, especially Portugal and Spain.

Portugal is regarded as the next weakest link after Ireland because of its high debt load and weak growth. It has been a target for market concern since Greece's bailout in May.

Trouble in Portugal also could affect neighboring Spain, where low growth and high unemployment are shackling the economy.
And:
Roubini, a professor of economics at New York University who had predicted the financial crisis, told daily paper Diario Economico it is "increasingly likely" Portugal will require international assistance.

He was quoted as saying there are ample funds to shore up Portugal, one of the eurozone's smaller countries which contributes less than 2 percent to the 16-nation bloc's gross domestic product. Roubini said Portugal is approaching "a critical point."

But, he said, Spain, Europe's fourth-largest economy, is "too big to bail out."

Meanwhile, in Greece: You know things are bad when governments can't buy arms from other governments..

Spain continues to reel: Irish backlash hits Spain, EU warns of blow to growth Contains the sentence: He commented: "Are we witnessing the early stages of a breakdown of the euro and indeed, possibly the European Union as well?"

Wiki Leaks and Korea are more sensational, but this story is no less important. The possibility of a debt implosion contagion spreading to multiple countries thereby jeopardizing the whole European Union is, at this moment, very real. We are still in unknown territory, and none of the related news is optimistic.

And, lest we forget.. Let the protests begin!