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Tuesday, August 2, 2011

Italian and Spanish Debt Yields are Spiking

And that's bad news for Europe.

I've taken to watching the 10-year yields on Italian and Spanish soverign debt as a recent hobby. Apparently, Europe is experiencing a slow motion soverign debt train wreck.

With respect to Italy, it has the third largest bond issuance in the world. I think they normally would simply revalue their currency. But they no longer have their own currency.

I don't quite know how the EU is going to bail out Italy (and Spain). They're going to try something.

And given that the rates are on a rocket ship to the sky (over 6% as of this post), they are going to need to do something immediately.

Oh, and the U.S. may be entering a recession. And the U.S. stock market is tanking.

It's going to be a fun August.

The Most Fabulous Objects In The World

  • Hitchhiker's Guide To The Universe trilogy
  • Lord of the Rings trilogy
  • Flight of the Conchords
  • Time Bandits