![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIozaBSe9G3akTfAmafdMvNhArodv8asYtGtX9F-9mjb5gyWm85asY64816sHimZL9tb6SIqhEGfa4tVQ2WjIdSXyv34nRJy-YBoJSzmf1fww3qwwVhzSAHxg5W79mpYwMx_dCcZ4BqDg/s320/italian_yields.png)
Not sure how much play this is getting in the media, but Italian 10 year bond yields are now above 7% (at right). The country cannot afford to pay that much interest and a vicious cycle looks to be occurring as investors realize this and stop lending. While Europe had a chance to rescue Greece, Italy is the ~
10th largest economy in the world and much too big to bail out. Those Euros in your drawer might just be a thing of the past pretty soon. We'll see how the Republicans feel about it tonight during the debate (at 6 MST).
Ezra Klein weighs in
here.
Paul Krugman contributes
here.
Ryan Avent of the Economist comments
here.
And Kevin Drum describes the situation
here.
No comments:
Post a Comment