Posted on 11/07/2011 4:19:22 AM PST by TigerLikesRooster
Italy on the brink as yields soar past point of no return
By Jeremy Warner Economics Last updated: November 7th, 2011
The eurozone debt crisis has again conformed to pattern this morning; just as one fire abates, temporarily at least – with news of the formation of a government of national unity in Greece – another lights up. Lamentably, this one – Italy – may be too big to douse.
The yield on ten year Italian debt rose to 6.59pc this morning, widening the spread on German bunds to an unprecedented 4.81pc. These are the sort of levels at which Greece, Ireland and Portugal began to find themselves shut out of markets.
Yet this time, there appears nothing there to offer support. The "enlarged" European Financial Stability Facility is not yet up and running. Few seem prepared to offer it the "leverage" required for the mooted €1 trillion of fire power. The European Central Bank under its new president, Mario Draghi, has said it's not its job to act as "lender of last resort" to governments. And the new funds that would allow the International Monetary Fund to step into the breach have not yet been agreed.
(Excerpt) Read more at blogs.telegraph.co.uk ...
P!
Don’t worry, they’ll have a meeting and announce everything’s fine. The markets will go back to normal and we’ll do this all over again in a few weeks.
And now the bond yields have plunged again.
Europe is resorting to such antics because its richer states – above all Germany -- still refuse to face up to the shattering implications of a currency that they themselves created, and ran destructively by flooding the vulnerable half of monetary union with cheap capital.
Sounds rather like the American liberal whine that the banks foisted cheap mortgages on the innocent poor.
OK Freepers. This was a given. The question is, where does one put liquid cash right now to actually make money?
The EU has replaced one head of state. They’re about to do it again. Democracy is dying in Europe.
Put it into Gold and Silver bullion, store the bullion near at hand and hold it until the Gold/DOW ratio goes below 1.
And of course take the usual domestic precautions.
Isn’t the oil countries wanting to make the beloved Euro their currency of trade and dump the worthless $$$. Seems they are ALL worthless now.
Well, in Germany’s haste to force the EU on Europe they shouldn’t be allowed to walk away from the problems it perhaps ignored during creation.
Eh, Europe’s not so badly off, especially not Spain. Spain is only at 65 percent debt to GDP. They are trying to sucker others into paying off their bills.
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