Irish Eyes Are Crying, Part 3

It's looking like the next domino to fall in the Eurozone after Greece will indeed be the Emerald Isle.

Ireland's central bank governor conceded on Wednesday a huge bank recapitalisation programme had failed to reassure investors as borrowing costs soared on fears its new fiscal plan would not be enough to avoid a bailout.

Ireland's tottering government is struggling to prove it does not need a Greek-style bailout to help it reduce the worst budget deficit in Europe, with markets concerned it will struggle to pass the first of four austerity budgets next month.

The European Union's monetary chief reiterated that Ireland had not requested any financial aid but the premium investors demand to hold 10-year Irish bonds rather than German benchmarks widened at the same speed Greece's spread expanded shortly before it sought its bailout in May.

With bond spreads now well over 600 bps, Irish bonds are now bordering on junk status and European banks are clearly expecting Greek-style intervention.  Let's keep in mind also that Ireland implemented a major austerity program earlier this year in order to cut national spending and trim their deficit.  I said back months ago that the austerity plan for Ireland would fail miserably and that a bailout was coming.  All that ended up happening was that their economy ground to a complete halt and now they will almost certainly need a bailout, most likely before the end of the month (if not sooner).

Now it looks like time is almost up.  Ireland's economy is unraveling and over the next few days and weeks you'll see the next bailout plan take shape.

This jig is indeed up.  Meanwhile, next door in the UK, London is definitely calling when it comes to their own massive austerity plan.

Students demonstrating against higher tuition fees burned placards, scuffled with riot police and smashed windows at the headquarters of Britain's governing Conservative party on Wednesday.

Protesters, their faces covered with scarves, kicked through the glass doors of the building, a short distance from the Houses of Parliament. Demonstrators occupied the ground floor reception area, while others streamed onto the roof of the building.

The violence broke out during an otherwise peaceful march by thousands of students and lecturers protesting against plans by the Conservative-Liberal Democrat coalition to triple the amount universities in England can charge students for tuition.

Carrying placards saying "Stop education cuts" and chanting "They say cut back, we say fight back," the marchers passed parliament, where politicians will in the coming weeks vote on proposals to lift maximum tuition fees to 9,000 pounds ($14,500) a year.

One has to wonder how long it will take before our country finally takes to the streets.  A government guaranteed maximum yearly tuition of $14,500 a year here would be seen as socialism of the highest order.