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Today, There's A Much Bigger Story Than The S&P Downgrade
TBI ^ | 8-7-2011 | Joe Weisenthal

Posted on 08/07/2011 6:12:52 AM PDT by blam

Today, There's A Much Bigger Story Than The S&P Downgrade

Joe Weisenthal
Aug. 7, 2011, 7:02 AM

Worried about the Monday open? You probably should be, but really, the S&P downgrade isn't the big worry.

It's Italy.

Italy has the third largest bond market in the world (after the US and Japan), and it's teetering on the brink of disaster.

The belief in Germany is that existing bailout mechanisms aren't sufficient to save the country and that expanding them isn't the right idea, since at that point you're talking about placing massive risk on Germany's sovereign debt itself.

The last backstop is the ECB, which will be deciding TODAY whether it will begin intervention in the Spanish and Italian markets. Last week German leaders (not surprisingly) opposed this, however that was before Berlusconi came out on Friday with an announcement of accelerated austerity.

It's also not clear whether, at the margins, ECB bond buying will be enough to halt the crisis, unless it really brings a gigantic bazooka to the game.

Regardless, concerns about the US debt, the changed perception of the dollar, and the political mess are all valid. Tonight and tomorrow, It's about Italy.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: euro; europe; italy; sp
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To: central_va

“Italy produces the best cars and women, hands down.”

Yes, and they’re both expensive.


21 posted on 08/07/2011 7:40:09 AM PDT by MCF
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To: central_va
I'm partial to the Swedish Bikini Team.

Cars? I've been into 4x4 trucks (real vehicles for various sports) for quite some decades.

22 posted on 08/07/2011 7:48:33 AM PDT by Paladin2
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To: PapaBear3625
They will be most displeased on the day the welfare checks don’t come.

Right. Back in the 1920's, the huge majority of the population was self-reliant. People did not sit on their front porches blaming "society" for their ills (even when society did deserve some blame). Folks rolled up their sleeves and did the best they could.

Not so today, both here and in Europe.

23 posted on 08/07/2011 7:50:28 AM PDT by Leaning Right (Why am I carrying this lantern? you ask. I am looking for the next Reagan.)
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To: blam

Italy....no I’m not worried about Italy.

More worried about those 320,000 protesters in Israel last night.


24 posted on 08/07/2011 7:51:43 AM PDT by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: trebb
If Italy goes down the tubes, we should point out the Socialist policies that led up to it,/i>

Yep, but the MSM will emphasize that the current Italian government is (somewhat) conservative, and that's all most people will hear.

25 posted on 08/07/2011 7:54:24 AM PDT by Leaning Right (Why am I carrying this lantern? you ask. I am looking for the next Reagan.)
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To: MCF
Yes, and they’re both expensive.

The maintenance is brutal.

26 posted on 08/07/2011 7:56:56 AM PDT by Stentor ( "All cults of personality begin as high drama and end as low comedy.")
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks blam.
Tonight and tomorrow, It's about Italy.

27 posted on 08/07/2011 7:57:07 AM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: yldstrk
There is a difference between a crash and the welfare checks not coming..........

When government revenues drop sharply, all sorts of expenditures become iffy.

28 posted on 08/07/2011 8:04:13 AM PDT by PapaBear3625 (When you've only heard lies your entire life, the truth sounds insane.)
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To: central_va

Best food, that’s for sure. I’m quite fond of northern Italy.


29 posted on 08/07/2011 8:08:58 AM PDT by Cboldt
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To: Stentor

So’s the reliability.


30 posted on 08/07/2011 8:13:10 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: central_va
Sophia at 70!

Photobucket

"Every thing you see I owe to spaghetti." S. Loren

31 posted on 08/07/2011 8:15:15 AM PDT by Roccus (Obama & Holder LLP, Procurers of fine arms to the most discerning drug lords (202) 456-1414)
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To: central_va
As a boy in the 60’s I lived in Germany and occasionally visited Italy. Wonderful country with great fun loving people.
32 posted on 08/07/2011 8:55:01 AM PDT by jpsb
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To: central_va

Why, thank you!


33 posted on 08/07/2011 10:14:08 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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To: MCF

So?


34 posted on 08/07/2011 10:14:44 AM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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