It’s becoming more and more obvious that if Europe doesn’t come up with something big, then something very bad could happen.
Greece, in a way, seems like a lost cause. Everyone knows it will default in some way or another.
But while Greece might theoretically be ring-fencable, nobody thinks Italy is, and that’s why it’s worrisome that its 10-year yield just hit 6% today, after being much lower for a while back in August.
Eventually, the ECB will have to step in and provide a blank check.