Italy next on the radar – Europe

Source: International Monetary Fund.

It has been correctly quoted that picture speak more than the words. So what does the graph looks like, Not more can be said for them as we focusing on Europe back again. It can be put in perspective that Spain got a bailout sorry they are negotiating their banking bailout.

Greece, got the series of bailouts and the omens showing that Greece’s non-timely payments of less than the amount owed to be a default — and we can expect Greece to leave the euro zone before 2013 is over.

So Guys Italy on the radar !!
Banks don’t have a huge amount of debt, the government does, especially when compared to the size of its economy. That could put Italy next in line for a bailout.

6 thoughts on “Italy next on the radar – Europe

  1. at the end of last auction, Italian borrowing became expensive. However, its yield curve fell. today’s response to its longer term bond auction wud be another event to watch out for Italy’s access to the market. The italian authorities had denied the need for bailout, saying that it does not face a housing bubble, its deficit wud fall to 3% at the year end. What was indicated earlier in this week, was that Cyprus could be the country applying for assistance.

    Like

  2. And as far as the fear of Greek exit is not as far as 2013. The danger is looming as close as sunday. the results of the elections could indicate (as S&P believes) an accidental exit. infact Credit Agricole had strated charting out ways to dela with its greek branches. The danger is not very far.

    Like

    1. Accidental exit will lead to a contagion, I belive the series of bailout provided with the hope that Grexit would be more systematic rather than accidental

      Like

      1. yea..it could.. but there is also a chain of argument that says that greece may be let to exit but other countries wud take a lesson and pull themselves up to not reach that stage. How circumstances turn out for Grexit, the general view among countries is to maintain EU membership.

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s