Telegraph: Reports that Italy barely passed its latest bond test, it sold its 10 year bonds at 6.98%. Thus the austerity package of the new Italian Government and the spending by the ECB has kept Italy from going belly up, but for how long before Italy needs a bailout, it can be expected that Spain will need a bailout in the near future. At the end of the day folks the EU leaders have not dealt with the one main problem, that is the DEBT within the EU. The retraction of the EU economies will push up welfare spending, thus more debt, thus the need for more money from the markets. In less the EU can develop a total GROWTH policy the EU will have a constant crisis on its hands, it can be postulated that either Italy or Spain will push the Euro over a cliff, the question folks will it take the EU with it, and what will be the cost to the UK.
Thursday, December 29, 2011
Italy and the Bond Market
Telegraph: Reports that Italy barely passed its latest bond test, it sold its 10 year bonds at 6.98%. Thus the austerity package of the new Italian Government and the spending by the ECB has kept Italy from going belly up, but for how long before Italy needs a bailout, it can be expected that Spain will need a bailout in the near future. At the end of the day folks the EU leaders have not dealt with the one main problem, that is the DEBT within the EU. The retraction of the EU economies will push up welfare spending, thus more debt, thus the need for more money from the markets. In less the EU can develop a total GROWTH policy the EU will have a constant crisis on its hands, it can be postulated that either Italy or Spain will push the Euro over a cliff, the question folks will it take the EU with it, and what will be the cost to the UK.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment