This looks like "the" tipping point to me. What do you all think? Can this still be contained?
From the Telegraph:
The yield was at 7.25% the last time I checked.
Italian 10-year Bond Yield
From the Telegraph:
Once above the 7pc mark, Greece lasted just 13 days before requesting a bail-out. Ireland lasted 15 days. Portugual held out longer but succombed after 49 days.
How long Italy can last is now the big question. The debt pile is far bigger. But Italy's economy is stronger.
It has a primary budget surplus for starters - if you exclude interest payments, Italy collects more in tax than it spends.
The country also has enormously valuable assets - the state property portfolio would easily cover the nation's debts, according to bankers. This can't be marshalled over night - or without a political fight, as Greece's asset-sale programme has shown.
In the meantime, the eurozone simply doesn't have the firepower in place to bail-out Italy. That's the problem.
How long Italy can last is now the big question. The debt pile is far bigger. But Italy's economy is stronger.
It has a primary budget surplus for starters - if you exclude interest payments, Italy collects more in tax than it spends.
The country also has enormously valuable assets - the state property portfolio would easily cover the nation's debts, according to bankers. This can't be marshalled over night - or without a political fight, as Greece's asset-sale programme has shown.
In the meantime, the eurozone simply doesn't have the firepower in place to bail-out Italy. That's the problem.
The yield was at 7.25% the last time I checked.
Italian 10-year Bond Yield
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