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Ireland Financial Crisis: The Very Bad Luck Of The Irish

First Posted: 05/20/10 07:51 AM ET Updated: 05/25/11 05:30 PM ET

Ireland Eurozone Financial Crisis

New York Times:

With the European Central Bank announcing that it has bought more than $20 billion of mostly high-risk euro zone government debt in one week, its new strategy is crystal clear: We will take the risk from bank balance sheets and give it to the central bank, and we expect Portugal-Ireland-Italy-Greece-Spain to cut fiscal spending sharply and pull themselves out of this mess through austerity.

But the bank's head, Jean-Claude Trichet, faces a potential major issue: the task assigned to the profligate nations could be impossible. Some of these nations may be stuck in a downward debt spiral that makes greater economic decline ever more likely.

Read the whole story: New York Times

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Filed by Adam J. Rose  |