Euro Bounces On Irish Request

More on Ireland Here

Ireland has apparently request assistance. Details still not know. Conflicting reports on size. Euro trades higher, but I remain suspicious. My target has been $1.3770, with potential of another cent if this is broken Many are arguing that save Ireland and systemic risk addressed. I am less sanguine because I think the market may turn its attention to Portugal very quickly. Portugal is uncompetitive and has huge stock of private debt. Public debt is "only" 86% of GDP, but private debt is nearer 240%, which is among highest in the world. It's productivity is 2/3 euro zone average. The IMF expects the economy to contract almost 1.5% next year and the government seeks to tighten fiscal policy 4%. The real question is how safe is Spain?