Redwood: 2011 will bring more Euro crises

The EU member states have agreed a Treaty amendment to take effect in 2013. This will give clear legal support to a new Euro bail out fund organised by the EU and Euro member states. The Bank of England offered a swap to the European Central Bank to improve its sterling liquidity. Meanwhile the markets have been giving their verdict on the Irish bailout. It has been far from encouraging. Last week Irish ten year bond yields were around 8.7% compared to 3.1% for Germany in the same currency. Irish debt was downgraded to BAA1 in a dramatic move which showed the world is not yet ...