EU agrees on $89 billion bailout loan for Ireland (52)

Seem's they got the problem as Hank....

Personally I hope Ireland default..That'll really put a spanner in the works..

Some country will soon, it cannot go on, and the EU will have to stop the bail outs then.

You know what's really messed up that even if they take the bail out there banks will downgraded and will only be able to do business locally. They would not be able to do business globally. On top of that the IMF and the EU Commission will dictate how they run their country and force on them more austerity measures.

So they are better of defaulting and not taking the bail out and do what Argentina did.

I reckon Ireland should do a Tito..take the money and run. If the EU are stupid enough to lend Ireland almost 100million green backs...Then they (EU) deserve to be taught a very expensive lesson...

Default all the way....

Yes, but it's hard to stop theme now.

Next is going to be Portugal, not Spain. But however, this is not the main issue in this very hot Thread, put by the German lady in here.

Yes, and than?

Yes, but it's all interrelated. The risk of contamination or 'domino-effect' is real. And you're right. The markets give the impression that they have chosen the next victim: Portugal - evidenced by the exorbitant interest asked to borrow in financial markets.

Germany, the European benchmark for excellence, has to pay 3% to finance itself in 10 years. Greece and Ireland have to pay 9 or 10%, and 7% for Portugal. The lenders require high interest rates on financial markets because they feel the risk is very high. Financial markets just simply abhor uncertainties ..

In the case of Ireland, ultimately it is the taxpayers who will have to pay the price. More and more observers believe that when a debt restructuring exists, the private sector (pension funds, banks, hedge funds,etc.) has to give its own share in the process by accepting losses on its investments.

Hi mikygr, good evening to you

Well, I honestly don't know anything about quantitative analysis and I am not anywhere close - not even a 0.0000000001 iota bit - to David Xiang Li's mathematical genius, but according to news reports, his theory seemed to work fine from 2001 to 2007. However, it was abused, misused or misinterpreted and its limitations largely ignored. He himself cautioned that his financial model relied on limited historic data so it could not capture all possibilities.

Like Friedrich Nietzsche quoted, "All things are subject to interpretation, whichever interpretation prevails at a given time is a function of power and not truth."

So I don't think it would be fair to blame the global financial meltdown to him (I mean Li, not Nietzsche ..:)just because he created a financial model that was adopted on Wall Street. His theory worked as long as trends continued to rise, but it faltered.

Anyway, in response to Chris' question about the whereabouts of the famous Mr. Li, I've read that he is now in China where he was born and keeping a low profile. He heads the risk-management department of China International Capital Corporation in Beijing.