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.
Fed Cuts IOER Rates
11 hours ago