From the WSJ this morning on the Irish situation,
Ireland's budget deficit may be the biggest in the developed world at 14.3% of GDP in 2009, but the government has been by the far most decisive in the euro zone, cutting public-sector pay by as much as 15%, reducing welfare and pension entitlements, raising taxes and recapitalizing the banking system. Yet the spreads on its government bonds remain stubbornly high at 2.77 percentage points over German Bunds, not far behind Portugal and well ahead of Spain.
Again and again that is what we get from Mr. Market. You wanna to let it steer your economy? You gotta be very careful with risks. This manic depressive and unreliable creature drives you crazy. Remember very good times is followed by very bad times and so on.