Banks 1, Portugal 0

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Another eurozone country has been humbled by its banks. Earlier this week, Portugal’s banks were threatening a bond-buyers’ go-slow unless the caretaker government sought financial help from other European Union countries. After being beaten up in Wednesday’s debt auction, Lisbon has waved the white flag. The country’s caretaker leaders have now admitted that Portugal will need outside help.

There is no denying that Portugal faces deep problems. The yield on the country’s five-year bonds had touched 10 per cent. On Wednesday, it was forced to pay 5.9 per cent simply to secure one-year money.