Dr. Krause said, "As of Sunday night, Ireland was fighting for its political and economic independence with negotiations beginning in Brussels for the ECU to support a bailout of up to £80billion. Investors have been selling Irish sovereign debt in recent weeks and we'll have to watch this week to see if speculation continues to grow that Europe won't intervene - there could be a run on other countries like Greece, Spain and Portugal. The graph below shows the huge rise in Irish yields and its credit default spreads."
|Source: Bianco Research|
BHP Billiton withdrew its hostile takeover bid for Canada's Potash Corporation on Sunday saying it did not feel it would be successful in convincing Canada's federal government to approve the deal. Officials in Ottawa announced earlier that it would block the deal because it wasn't a net benefit to Canada. Krause said, "I believe that BHP's withdrawal of the Potash deal indicates the beginning of more governmental intervention. Following the G20 meeting in South Korea, I think we likely continue to see governmental intervention in the form of increased tariffs and blocked acquisitions."
"Ireland is the new Greece"