McIcarus falls to earth

This is precisely what happens when rates, currency, and fiscal policy are not combined.

Irish Prepare to Learn Full Cost of Banking Crisis
Ireland suspends trade in Bank of Ireland, Allied Irish Banks before
stress-test results

Ireland prepared to learn the full cost of its banking crisis on
Thursday when the results of stress tests were expected to reveal that
four banks need billions more in aid, likely giving the government
extra ammunition in its campaign to force some of the losses on
international investors.

As the results loomed, market tensions were at a high, forcing the
suspension of trading in the shares of Bank of Ireland and Allied
Irish Banks. Irish Life & Permanent and the Educational Building
Society were also being tested.

A senior Irish banker, Mike Aynsley, said he expected the tests to
conclude that the four lenders would need another euro18 billion to
euro25 billion ($25 billion to $35 billion) to strengthen them against
any future shocks.

That figure would come on top of the euro46 billion ($65 billion) that
Ireland, a nation of just 1.8 million income-tax payers, has already
paid to prevent the outright collapse of five banks since 2008.
Ireland has repeatedly been forced to raise its worst-case estimates
of bank losses as its property market sinks deeper, forcing many of
construction barons into bankruptcy.