BBC News: Reports that the Centre for Economics and Business Research a UK think tank has predicted that Italy will default due to its debt, it has predicted that Italy will have a debt of 150% of its GDP, while Spain will avoid default due to the fact that its debt is well below 100% of GDP. In other words the advice to markets, start to sell Italian debt, for any bailout of Italy the Germans will demand that the private debt holders take a major hit, thus markets its in your interest to sell Italian debt and not buy any more bonds. As Italy is a lost cause, the markets should support Spain, there debt = to GDP is 75%, thus this can be managed by the EU/IMF and the markets. At its most basic folks, the Market is the Doctor in A&E, it has two patients, both are damaged, but one will just about get through, the other wont, you have to make the right decision, keep the patient that going to live and let the more damaged patient go, it’s the hard fact we face today folks, Italy is a goner, there are no silver lining in the clouds folks.
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