Peter ‘n the “old boys”…

say we are heading for bailout; we’ll need some growth to cover bond yields of 8.95% if thats where it goes.


Goldman: Ireland will need bailout

Wednesday, November 10 16:58:42

There is a “big possibility” that Ireland and Portugal will need to seek aid from the European Union, Erik Nielsen, chief European economist at Goldman Sachs Group said today.

“There is a big probability that the Irish and the Portuguese will end up having to get help from the official sector” of the European Union “unless the markets suddenly calm down,” he said on Bloomberg Television today.

“These funding costs you are seeing right now are clearly not sustainable.”

Meanwhile, Goldman Sachs’ analyst, Francesco Garzarelli, said a bailout of Ireland and Portugal through the European Financial Stability Facility would resolve current market tension and not lead to contagion.

“Unlike in the aftermath of the Greek ‘bailout,’ we are of the view that such an outcome will not lead to contagion. Rather, it may mark a resolution of ongoing European Monetary Union sovereign tensions.”

Irish Bonds fell for a 12th straight day, widening the yield spread with benchmark German bunds by 31 basis points to as much as 586 basis points, the most on record. Portuguese bonds also fell, widening the yield spread by 11 basis points to 454 basis points, also a record