Bill Spartin
4/1/11
3:11 am
The newscast I watched regarded Ireland and its increasing need for money to bail out the banks and survive hard financial times. The Republic of Ireland needs about 24 billion Euros to survive this financial crisis. Due to the Irish property bubble bursting three years ago Irish banks were left exposed, and much of the money they lent they could not get back. The 24bn Euros they now needs brings the total cost of bailing Ireland out to around 70bn Euros, or 100 billion U.S. dollars. This new need for money raises Ireland’s debt to 15,555 Euros or 22,000 U.S. dollars per citizen. This is the first major challenge Ireland’s new Prime Minister Enda Kenny has been required to face. Edna and his new administration wish to restructure the banks completely, sharing some of the costs with the bank’s lenders. The people of Ireland are already paying the price for its countries’ economic failure, wages are being cut, mortgages are past due, and family size is increasing. The extra funds required for the banks will come out of the bailout fund negotiated last year with the European Union, as well as from the International Monetary Fund.
What this newscast means is that Ireland is becoming more and more in debt and needs yet another bailout to keep the banks open. The citizens are weary because this is the first real problem that Prime Minister Edna Kenny has had to face yet, and the country doesn’t know how successful he can be. On top of all that this means that there are countries whom are doing worse than others in this poor economy.
On a related note the Euro is still rising on the U.S. dollar now at 1 Euro = 1.417 USD
http://www.bbc.co.uk/news/world-europe-12927467
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