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Italy borrowing costs hit record 7%
BBC News ^ | November 9th, 2011 | Staff

Posted on 11/09/2011 2:40:36 AM PST by AnAmericanAbroad

Italy's cost of borrowing has touched a new record, a day after Prime Minister Silvio Berlusconi said he would resign once budget reforms are passed.

The yield on Italian 10-year government bonds reached 7%, the highest since the euro was founded in 1999.

The debt was pushed up as a clearing house asked for a larger deposit to trade Italian bonds - to cover the increased risk of non-payment.

Investors fear that Italy could become the next victim of the debt crisis.

(Excerpt) Read more at bbc.co.uk ...


TOPICS: Breaking News; Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: african; angelamerkel; arabs; bonds; default; eu; europeanunion; italy; mariomonti; markets; nicolassarkozy; socialism
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To: Daffynition

Jeez, in that one he looks like Simon Cowell. Medvedev is the invisible man.


21 posted on 11/09/2011 7:50:59 AM PST by mewzilla (Forget a third party. We need a second one.)
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To: Euroconservative

You make excellent points, and I hope that your conclusion about a technocrat government appointed by President Naplitano is correct.

Unfortunately, logic doesn’t always move markets. Quite often, it’s emotion based. Even though I didn’t always agree with former Fed chairman Greenspan, I do agree with his observation about “irrational exuberance.”

It works both ways; in this case, hysteria. There’s the market’s perception (and cultural stereotype) of typical post WW2 Italian politics, i.e., bumbling, corrupt, fractious and inept.

There is a significant divide between Northern/Central Italy and the South. The North/Central regions are actually doing well; it’s the South that’s the overall drain on the rest of the country.


22 posted on 11/09/2011 7:56:26 AM PST by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: Daffynition

And shortly after this photo was taken, did Silvio and Dimitry go to a bunga-bunga party?

What happens in London, stays in London.......


23 posted on 11/09/2011 7:59:53 AM PST by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: Euroconservative

Do you not think Italian bondholders watching Greece bondholders being forced to agree to take a 50% haircut would have a significant risk of exposure to a similar fate on Italy’s $2.6 trillion debt? I would think a $1.3 trillion haircut exposure would make me want a much higher bond rate yield to entice me enough to buy Italian debt, JMO.


24 posted on 11/09/2011 8:01:02 AM PST by OB1kNOb (The prudent see danger and take refuge, but the simple keep going and pay the penalty. - Prov 22:3)
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To: AnAmericanAbroad
*....How does anyone drink 161 miniatures?....Are they not complementary?*
25 posted on 11/09/2011 8:08:28 AM PST by Daffynition (“There are no compacts between lions and men, and wolves and lambs have no concord.” ~ Homer)
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To: AnAmericanAbroad

The post-WW2 italian political crisis is at least 50 years old: a different government each year, with no real alternation (since the largest left-wing party was communist: mainstream parties corruption was publicly uncovered only after the fall of Berlin Wall). I hope this will change. One of the reasons of Berlusconi being voted was that he brought something similar to a two-party system.

In any case, even if italian risk drops, the financial crisis will go on. They would likely target Portugal or Ireland again, or Spain (22% unemployed) or add a new country like Belgium, which suffers from some “italian” issues (regional dualism, high public debt, political instability).


26 posted on 11/09/2011 8:14:21 AM PST by Euroconservative
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To: mewzilla
In my wildest imagination, I could never conceive Putin to be out of control like Medvedev has been.


27 posted on 11/09/2011 9:09:34 AM PST by Daffynition (“There are no compacts between lions and men, and wolves and lambs have no concord.” ~ Homer)
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To: AnAmericanAbroad
"One last question, Captain Nemo."

"Ask it, Professor."

"You are rich?"

"Immensely rich, sir; and I could, without missing it, pay the national debt of France."

- "Twenty Thousand Leagues Under the Sea" by Jules Verne

28 posted on 11/09/2011 12:51:55 PM PST by starczar66 (All that is necessary for the triumph of evil is that 51% of voters are ignorant.)
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To: Euroconservative

Well cash flow doesn’t lie, they either are deficit spending or they are not. And if they are not, can they and will they increase tax revenues to cover the deficit? Or reduce spending for the same result?

I’m doubtful.

FWIW, thanks for pointing out that the northern area of Italy is like the red states area of USA. Productive and hard working. Southern part is the problem from what I can recall.


29 posted on 11/09/2011 3:48:35 PM PST by delapaz
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