Italy is the new hot spot crisis zone of Europe.
It was already under scrutiny thanks to the foibles of and legal pressure on its President Silvio Berlusconi.
Then Tunisia happened and it was forced to deal with a flood of unwelcome immigrants. Now Libya is happening, and the problem is magnified to the point where the government has basically sided with Gaddafi.
Yesterday Italian stocks had a horrible day, with the FTSE MIB index falling 3.6%. Today…. well, we don’t know, because of a glitch at the Borsa Italiana.
But we do know that the country’s 10-year spreads blowing out sharply today. Probably tells you all you need to know.