Thursday, February 03, 2011

Data released by the Irish central bank shows that depositors are withdrawing their money from Irish banks at an alarming rate.

The Telegraph reports that outflows in December 2010 were Euro40BN, compared with Euro27BN in November. The total outflow for 2010 was Euro110BN (60% of GNP).

To add to Ireland's woes, Standard & Poor cut Ireland's sovereign rating one notch to A- yesterday and downgraded Bank of Ireland, Allied Irish, Anglo Irish and Irish Life.

This indicates that the Eurozone "rescue" of the Irish economy has all but failed.

Further aid from the Eurozone may be unlikely, as Germany is in no mood to throw more good money after bad.

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