QE2 vs. European Sovereign Debt Crisis

"Luck O' The Irish"  I've been talking about this for a few weeks now, and in yesterday's post highlighted the blowout in spreads for Irish sovereign debt.  Below are just the headlines from RAN Squawk, and I would expect that we see more follow-up from Bloomberg, Reuters and CNBC later in the day.

Last time this happened with Greece, we saw the Flash Crash and several months worth of selling.  Will that happen again?  Not if Ben Bernanke and the Fed have anything to say about it.  First POMO of QE2 should now be in process, with $6 - $8 Billion ready to hit the markets later this morning from the primary dealers.  Will be interesting to see how this day ends....markets are all in the red and at low of day as I type....

11-12 10:17: Bunds fall on RTRS reports Ireland to recieve emergency funding from European Union

11-12 10:17: Eurozone sources say assistance to Ireland does not foresee any debt restructuring or 'haircuts' for bond holders

11-12 10:16: Eurozone sources say 'very likely' Ireland will get EU financial assistance programme

11-12 10:15: Eurozone sources say Ireland in talks to receive emergency funding from the EU