Friday, March 25, 2011 4:48 AM

S&P Nightmare Scenario: Spanish Housing Prices Drop by 45%, GDP Drops by 20%, Interest Rates Hit 17%; Portugal May Need $99B; Missteps by Merkel

In the wake of the collapse of the Portuguese government comes the not unexpected news Portugal May Need $99 Billion Rescue http://www.bloomberg.com/news/2011-03-2 ... ilout.html

A bailout for Portugal may total as much as 70 billion euros ($99 billion), two European officials with direct knowledge of the matter said, as credit-rating cuts threatened to deepen Portugal’s debt woes.

Preliminary calculations put the cost of a lifeline from 50 billion to 70 billion euros, said the officials, who declined to be named because the issue is confidential. Portugal continued to rule out a rescue after the parliament’s rejection of budget cuts led Prime Minister Jose Socrates to offer to quit.

“It’s pretty inevitableâ€