Roubini: Portugal Should Take a Bailout


Ireland Gets 85 Billion Euro Package(Bloomberg) Bloomberg's lede graf provides a good index of the sentiment: "European governments sought to quell the market turmoil menacing the euro, handing Ireland an 85 billion-euro ($113 billion) aid package and diluting proposals to force bondholders to bear some cost of future bailouts."

Four words— 'sought', 'quell', 'turmoil', and 'menacing' —would seem to capture the current tone of the markets in Europe. Also, German Chancellor Angela Merkel's initial insistence on haircutting Irish bondholders would appear to have been removed. But: "The twin decisions were not enough to placate investors today that the crisis is now contained. Irish 10-year bonds erased an early advance, European stocks and the euro declined and the cost of insuring the debt of Spain and Portugal against default soared to record highs." Investors seem to believe that if you plug the hole in Ireland, the fear just migrates south and east.

Greece Bailout Repayment Timeline Extended (CNBC via Reuters) Greece will have an additional six years to pay back its 110 Billion Euro bailout loan to the EU and IMF. The loan, which was originally due to be repaid in 2015, has been extended to 2021. In exchange for the extension, Greece will pay another 30 basis point of interest – bringing the total rate to 5.8 percent, from an initial interest rate of 5.5 percent. The plan has been agreed to informally, with details expected to emerge after a formal agreement during the next Eurogroup and Ecofin councils on Dec 6-7.

Roubini: Portugal Should Take a Bailout(CNBC via AP) In an interview published this morning, Nouriel Roubini said "There are ample funds to shore up Portugal, one of the euro zone's smaller countries which contributes less than 2 percent to the 16-nation bloc's gross domestic product." However—and this is the frightening part—he reiterated his assertion that there simply isn't enough to fix Spain, saying that the Spanish economy is "too big to bail out." (Also, too big to fail.)

More Embarrassing 'WikiLeaks' (Financial Times) This time, the leaks involve not just military policy but also international economic affairs. For example: "It also reports what it says are 'highly critical private remarks' by Mervyn King, governor of the Bank of England, about Mr Cameron and chancellor George Osborne’s 'lack of depth'." And, perhaps more disturbing, this: "North Korea has provided Iran with new, more capable missiles, US diplomats at the UN are seeking intelligence on allies and Washington is deeply concerned about loose nuclear material in Pakistan, according to documents released on Sunday in the world’s biggest leak." The leak also reveals private U.S. diplomatic discussions about foreign leaders that were clearly never intended to be made public.

(For example: Characterizing Putin and Medvedev as Batman and Robin. Needless to say, you can guess which is which.)

Is 'Cyber Monday' an Urban Legend? (CNN) Hmmm. According to the article, the notion of a 'Cyber Monday'—where online shopping volume and traffic skyrocket—is "mostly a marketing gimmick." Interesting: "Cyber Monday has never been the biggest day of the year for online retail sales, said Andrew Lipsman, director of industry analysis at comScore, a company that monitors internet traffic. Typically, a Monday in December takes that title, and Lipsman predicted the biggest online retail day of 2010 will be on December 13."

"Irish Bailout Gets Lukewarm Market Response" (Yahoo Finance via AP) Here are the numbers: "The FTSE 100 index of leading British shares was down 3.25 points, or 0.1 percent, at 5,685.45, while Germany's DAX fell 28.98 points, or 0.4 percent, at 6,820. The CAC-40 index in France was 17.11 points, or 0.5 percent, lower at 3,711.54. Wall Street was poised to open higher—Dow futures were up 31 points, or 0.3 percent, at 11,061, while the broader Standard & Poor's 500 futures rose 3.9 points, or 0.3 percent, to 1,187.30."