More Bad News for Ireland's Banks and the Country

link here to article

This article (Via Manan Shukla) paint an even bleaker picture of Ireland's financial crisis than some of our previous posts on problems in Ireland. It is a story of a banking system which is to big to save. The iIrish economy is not big enough to absorb the losses suffered in the banking system. The banks borrowed heavily from banks, especially German banks, in Europe and the government guaranteed the debt. The problem is that the Irish economy is small relative to the total debt burden that the banks and the government have assumed.