Reuters BreakingViews editor Hugo Dixon spoke to CNBC about the Irish crisis. After his comments on Ireland, Dixon talks about the Fed potentially dropping its employment mandate.
- 0:13 EU’s Rompuy is overdoing it in, Ireland’s leaders are over doing it, both are using extremist language on the state of Ireland.
- 0:55 The worst thing that can happen is a knock on series of bailouts, behind Ireland and Portugal, to Spain. The money becomes too big, and eventually Germany and others say no. Then the euro has a problem.
- 1:50 What’s most likely to happen is that Ireland’s banks will get a bailout, then Ireland will get a second bailout, then Portugal will get one too.
- 2:25 These are small economies. (suggesting when it gets to Spain it isn’t)
- 2:55 I don’t think these bailouts are going to accelerate the idea of fiscal union. The Germans are not pleased about making transfers, rather than loans.
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