Irish bailout fails to stem Eurozone contagion as Spain bonds and European stocks slide

I thought we learned in 2008 that bailouts beget other bailouts.  The idea that we can stop the bond rot fueled by debt simply by giving more money just doesn't make sense.  Via Bloomberg:
Irish 10-year bonds slid after an early advance, European stocks and the euro declined, and the cost of insuring the debt of Spain and Portugal against default soared to record highs.

“The notion that a rescue package for Ireland would create a firewall and stop the fear of contagion is clearly discredited,” said Preston Keat, director of research at Eurasia Group, a political consultancy, in London. “Portugal and Spain are already facing pressures in the markets.”

The yield on Spanish 10-year bonds rose 25 basis points to 5.46 percent, the highest since 2002. That pushed the premium over German bunds to 271 basis points, a euro-era record.

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 Markit iTraxx SovX Western Europe Index of swaps on 15 governments increased 6 basis points to a record 194, based on closing prices.

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