US

If The Irish Crisis Goes All The Way To Spain, It Could Be The End Of The Euro

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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