Always A Bad Sign, Irish Leaders Are Back To Blaming The Market For Its Problems


Things have stabilised a bit in world financial markets, and Europe has snapped back a bit, but we’re still  talking about Ireland, which has come back into the fore as a sovereign debt concern.

One thing that’s always worrisome is when leaders blame markets, rather than fundamental issues, for their problems, which is exactly what’s going on.


The risen spreads of Irish bonds are “a setback” for the hope that markets would reflect the country’s efforts to demonstrate fiscal credibility, European Central Bank Governing Council member Patrick Honohan said in an interview published late Wednesday.

The head of Ireland’s central bank told Telegraph that “the spreads are a setback for our hopes of a narrowing to reflect the fiscal credibility of the country. I don’t look at them every day but at this
level they are ridiculous.”

Meanwhile, Irish banking leaders attempt to make reassuring noises. The head of the Bank of Ireland, according to the Irish Times, is talking about his desire to wean his bank fo state aid within three years.

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