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Expect further defaults on debt.
Investors fret that Ireland's banks might need yet more support if a weak economy spurs a wave of further defaults on property loans.As bad as things are, Ireland is not on the brink of default.
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Other euro-area members could suffer contagion as markets bet on further defaults.If the act of leaving would be hard, the aftermath might be even harder.
(In November, the government defaulted on $800m of World Bank debt. Without an IMF agreement, further defaults are likely).
The markets are already pricing in the possibility of further defaults.
For the government, the sanctions raised the dire possibility of further defaults.
Some examples: Hope for Homeowners is a Federal Housing Administration program designed to modify existing loans by writing down the principal, offering insurance against further default and introducing shared appreciation on the property.
HBOS said it had set aside cash to cover defaults on 18% of its mortgage book in anticipation of further arrears as the economy continues to deteriorate.
As Ireland's construction industry collapses and unemployment climbs, increasing defaults on loans for individuals and businesses will lead to further losses at the banks.
Greece defaults on its debts.
And defaults on corporate bonds are low.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com