One way to end Irish crisis — let banks go bust

WASHINGTON (MarketWatch) — Missing in the 88 pages the Central Bank of Ireland has produced in determining that the Irish banking system is undercapitalized by some $34 billion (24 billion euros) is a different way to end the euro-zone nation’s financial crisis.

It’s an elegant and simple solution, and one that could prove cheaper: Let all the banks collapse.

Japan Quake, Euro Debt Crisis Cloud Recovery, Wang Says

Japan’s earthquake and tsunami, the European debt crisis and turmoil in the Middle East are adding uncertainty to the global economic recovery, China’s Vice Premier Wang Qishan said at a Group of 20 Nations seminar today.

Euro Region Is Prepared for Any Debt-Crisis ‘Turbulence,’ Asmussen Says

German Deputy Finance Minister Joerg Asmussen said the euro region is prepared for any financial-market “turbulence” resulting from the bloc’s sovereign-debt crisis.

“We have the strengthened Stability and Growth Pact, we have the euro-plus pact for competitiveness, we have the design of the permanent crisis-resolution mechanism, the ESM,” Asmussen said in an interview on his way to China, where German officials will participate in Group of 20 talks tomorrow in Nanjing. “We will explain the results in detail to our partners. We are well-suited for turbulence that may arise in financial markets.”

Another euro crisis scalp

The Portuguese parliament's rejection of another austerity package left the Socialist Party leader with no choice but to resign.

This week's resignation of Portuguese Prime Minister Jose Socrates, following the rejection of his government's austerity package by parliament, is the second major scalp to be claimed by the crisis gripping the eurozone periphery.

Ireland tax battle adds layer to euro debt crisis

LONDON (MarketWatch) — Ireland’s low corporate tax rate isn’t responsible for Europe’s debt woes, but a battle over the levy is adding yet another layer of uncertainty to the euro-zone’s long-running sovereign debt crisis.

The Irish 10-year government bond yield pushed above 10% Thursday, while short-term two-year yields also traded near double digits, underlining fears that the 85 billion euro ($120.1 billion) European Union-International Monetary Fund bailout provided last autumn won’t be enough to ensure Dublin avoids default.