Trouble Brewing in Ireland

If you thought the Irish bank bailout was bad, wait until the mortgage defaults hit home. Irish household are struggling to pay mortgages they cannot afford because of the stigma attached to default. But in time this will change as the Irish take a page out of the U.S. household's play book and walk away from their obligations. The perception growing among borrowers is that while they played by the rules, the banks certainly did not, cynically persuading them into mortgages that they had no hope of affording. Given Ireland's history, this could lead to social uprising. The market will soon realize that Ireland is effectively insolvent and put added pressure on the Euro. Read the grim outlook for the brewing mortgage default here.