European Banks have $650 billion Exposure to Ireland; Germany’s Economy Minister says "EU Cannot Throw Money from Helicopters"

In case you were wondering about why there is intense pressure on Ireland to accept a bailout from the EU and the IMF, look no further than the fact that European banks have $650 billion Exposure to Ireland.

Nonetheless, in a clear backhand slap in the face to Ben Bernanke, Germany’s Economy Minister says "the European Union cannot throw money from Helicopters". Let's explore this messy situation with a peek at a couple of articles.

Pressure Mounts on Ireland

The New York Times reports New Push for Ireland to Consent to a Bailout

As Ireland tried to fend off pressure to accept a bailout on Tuesday and other European nations raised objections to participating in a rescue plan, Europe again found itself confronting a crisis of confidence in the euro and, ultimately, in its ability to manage its economic problems.

A very public struggle over how to grapple with the latest market unease over the fiscal stability of several European countries illustrated the touchy questions of sovereignty and difficulty of reaching consensus that have kept Europe from reacting quickly. The latest episode also raises questions about tapping an existing bailout fund that Europe created earlier this year to prevent a debt crisis in Greece. (more)