Posted on 06/14/2012 12:35:33 PM PDT by Kaslin
Sovereign bond yields in Spain and Italy have been climbing across the board, not just the longer durations. Please consider Italy pays dearly to issue one-year debt.
Italy sold €6.5bn of one-year debt at the highest cost since December, underscoring how one of the world’s biggest bond markets has been dragged back into Europe’s debt crisis.
The 364-day bills were priced to yield 3.972 per cent, but the bid-to-cover ratio fell to 1.73 from 1.79. At the last auction of similarly dated debt Rome’s Treasury only paid 2.34 per cent, according to Bloomberg.
(Excerpt) Read more at finance.townhall.com ...
The Euro has declined from 1.55 to 1.25 against the dollar.
So why would any investor buy Italian bonds right now?
The regulators must be giving out goodies to the banks who buy them.
The Euro has declined from 1.55 to 1.25 against the dollar.
So why would any investor buy Italian bonds right now?
The regulators must be giving out goodies to the banks who buy them.
The Euro has declined from 1.55 to 1.25 against the dollar.
So why would any investor buy Italian bonds right now?
The regulators must be giving out goodies to the banks who buy them.
The Euro has declined from 1.55 to 1.25 against the dollar.
So why would any investor buy Italian bonds right now?
The regulators must be giving out goodies to the banks who buy them.
When depositors can’t get their money out of a bank then yes, Italy is the next domino.
Italy is too big to fail (because it will bring down the EU), but also too big to save.
The real fun begins when the Europeans find themselves having to choose between defaulting on their pension obligations to their native European retirees, or withdrawing welfare benefits from their Muslim immigrants and expelling them. I expect this to happen before end of year.
I suspect Obama wanted this debacle to hold off until 2013, so that the disaster could be blamed on Romney. I don’t think there’s a way to hold it off.
Southwest Airlines now has flights to Iceland.
They appear to be recovering well.
I suspect there are some folks in Reykjavik anticipating the collapse of the EU with a certain justified glee.
Just like Spain. For weeks they denied they need a bailout, until they did.
Meanwhile the 4th largest Italian bank closed its doors some time ago....
Please don’t hold or dwell the “post” button.
Oh, well! -- that makes it official.
Italy is next, in three, two, one ....
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