EUROZONE: Markets Drop Again...As Greeks Slowly Sort Out Their Politics.

GUARDIAN

European markets dropped again...to a 3-month low on Greek debt worries. Japan's market also fell.

PM George Papandreou says he will reshuffle his cabinet and seek a confidence vote.
His government had only a 4 vote majority...and 2 party members have defected.

FM George Papaconstantinou is now the target for protestors and the conservatives...because of his austerity proposals.

The conservative party led by Antonis Samaras reportedly opposes spending cuts...and instead wants tax breaks and renegotiations with creditors.

The markets don't care who governs. They want agreement... so the IMF or somebody will pay the next tranche. They simply fear...contagion.

"It is the contagion effect, which is unnerving markets. It is not just about Greece, but about who is the next," said the head of investment dealing at a fund company that manages $80 billion. "We need a proper long-term solution, not a plaster."

The WSJ quotes an observer at MF Global.
It goes something like: "...the guys with the cigars don't like rioting. It makes them uncomfortable...and says to them...that it is time to head for the sidelines."

AP  1:10 Video Report
http://www.youtube.com/watch?v=5J5KEc7AWeQ&feature=player_embedded

EUROZONE: 2ND UPDATE: Spain And Portugal Pile-on Reluctant Ireland To Take Bailout ...And Avoid Dreaded Contagion.

LINK CHANGE/MORE DETAILS/ NYTIMES/ 16 NOV:
   As their borrowing costs skyrocket, Portugal along with Spain are heavily lobbying Ireland to take an EU bailout.
They fear "contagion" from the retreat of investor confidence.
      The Irish government admitted that it had been in talks with EU officials over its debts but reports are that it is very reluctant to accept help at this time.
    Portugal's Finance Minister Fernando Teixeira dos Santos (pictured) said: “If things are getting worse in Ireland, for instance, that will have a contagion impact on the other euro zone economies and particularly on those that are under closer scrutiny of markets, like Portugal,” he said. Asked if Ireland should accept a bailout to stem the contagion, Teixeira dos Santos said, “It’s not up to me to make that assessment.”
    Portugal especially worries investors because it has lagged Spain and even Greece in  proposing new "austerity" measures.
    Many economists believe it inevitable that Ireland will tap into and may need ALL of a €60bn EU rescue fund set up in May... just to shore up its ailing banks.

UPDATE and ANALYSIS/  NYTIMES/    17 NOV:
  Are Irish pride and national politics holding-up an agreement? An political observer said that Ireland's PM Cowen was correct “in playing coy and cautious until absolutely certain what the situation is and what’s on the table, to get the strongest deal he can.” But “pride cometh before a fall. We’re in serious danger of falling off a cliff.” Plus, Germany wants Ireland's corporate tax raised. Experts estimate Irish banks may need $100 billion euros bailout. Austria is even holding up its contribution to the Greek bailout fund because “If Greece doesn’t fulfill certain things, we have the need for discussion,” its finance minister said. Greece was “not 100 percent on track."