Keep in Mind, This Is Just the Beginning

Ireland is saved!* Now on to Portugal and Spain!

Nov. 29 (Bloomberg) -- The cost of insuring against default on Portuguese and Spanish government debt soared to record high levels as an aid package for Ireland failed to reassure investors the region’s debt crisis will be contained.

Credit-default swaps on Portugal jumped 36.5 basis points to 538.5, and contracts on Spain climbed 24.25 to 347, according to CMA...

“The market seems to think it’s inevitable Portugal requests assistance next -- perhaps in January? -- and then after that Spain will be scrutinized with a fine tooth comb over the coming months,” said Jim Reid, head of fundamental strategy at Deutsche Bank AG in London.

Just like the mammoth marital fight that occurs when you and your spouse come to the realization that having 5-digit balances on 6 different credit cards plus a mortgage plus two auto loans means that you're practically bankrupt, this is the part with all the yelling and jumping up and down. Once the screaming has stopped, the bills have to be paid. The real change will occur once priorities are reassessed and you have to live within your means while struggling to pay down those monstrous debts.

* - Well, at least until they realize they can't pay back a $113B loan.