Finance, Economy, Money.: 11/1/10

There is nothing attractive about a country going down into an economic crisis. It usually includes panicked investors, angry citizens, and, in some cases, riots and demonstrations. In 2010 we have watched Greece tumble into an IMF/European Union bailout and later in the year, Ireland. The second case should be of particular alarm to global policy-makers and investors as the Irish government made a very strong effort to avert a bailout, imposing tough austerity on the country for two years running. Now there is more pain coming in the form of the 2011 budget and an IMF/EU support package, a situation complicated by elections in January 2011. Despite the horror of the situation, Ireland is still going to exist as a country. Yes, its sovereignty is dented, but nobody is questioning its future existence. If that were the case, the financial panic would no doubt be greater. That is why the case of Belgium, one of Europe’s largest debtors, remains so intriguing.

For details: http://www.kwrintl.com/library/2010/belgium.html