Inquiring minds are astounded at the sheer size of the Irish bailout. It is reported that Ireland will seek emergency international aid totaling as much as 60 percent of the size of its economy, dwarfing the Greek bailout:
Ireland will ask for about 95 billion euros ($130 billion) from the European Union and International Monetary Fund, Goldman Sachs Group Inc. estimates. UniCredit SA put the package at as much as 85 billion euros, while Deutsche Bank AG sees a 90 billion-euro plan. The 110 billion-euro aid for Greece in May was the equivalent of 47 percent of its gross domestic product.
And the rest of the Euro PIIGS:
The cost of a bailout on the Irish scale for Portugal, seen as the next weakest link among the EU’s high-deficit countries, would cost 100 billion euros, based on a package of 60 percent of GDP. For Spain, whose banks have also come under strain from the collapse of its real-estate bubble, a bailout of 60 percent of GDP would cost 632 billion euros. For Italy, the region’s second-most indebted nation after Greece, the figure would be 912 billion euros.
How can the world, let alone Germany, afford such a scenario?
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