And Another Ominous SIgn In Italy

Eclipse

Photo: David Paleino via flickr

Earlier we mentioned tanking stocks, but we just wanted to catch the other side of the equation.There’s another credit blowout happening, with 2-year yields blasting to 4.78%, a new crisis high.

The 10-year yield spread to German Bunds is also blowing out to a new record.

This is serious stuff, obviously. It’s going to either require a lot of hope, or a political decision that’s way harder than raising the debt ceiling, or even bailing out a tiny country like Greece.

What’s more, at the pace ot deterioration we’re seeing right now, it seems like we’re talking a matter of days or weeks before something has to change, and not much longer than that.

 

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