Well while I was in Georgia the entire banking industry went into meltdown. And in Ireland the FF government has made the odd decision to guarantee all bank deposits in all banks. A €400bn bailout for the banks. We are in the tank for almost twice our own GDP.
Rightly, the EU is looking at this issue, as it may break trade rules. And how has the market responded? Credit default swaps on Irish debt, or the likelihood that Ireland will default on her bonds issues surged to record levels, 60 points.
From my initial reading, this is a bad deal for us and a lifesaver for banks who only last week we were told were entirely stable.