We hear everyday about the PIIGS, Portugal, Italy, Ireland, Greece, and Spain and how their debt is going to sink their countries. The European Central Bank (with some help from the Federal Reserve) is doing whatever it can to avoid a massive default on sovereign debt from any of those countries.
Typically the remedy to the problem of too much debt has been for the those countries to take on MORE debt either from the ECB or the IMF. Ireland's most recent agreement with the ECB means they will get loans from the Band of England and the ECB that could total $16 billion.
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