Photo: Wikimedia Commons
The markets have known all week that Italy was still sick — despite last week’s good-faith attempt by the EU to stop the contagion around Greece’s borders — and now it’s official.Speaking at a press conference (via Bloomberg), Italy’s finance minister Giulio Tremonti has said that the debt crisis is a “European Issue,” which is in a sense old news, but in a sense a not-so-tacit admission that the problem has yet to be resolved.
This come after a weak 10-year debt auction today, which was followed up by declining markets and widening spreads across the curve.
Also speaking out now: Vittorio Grilli, Director General of the Italian Treasury who says that “nervous markets” want a faster EU rescue plan, and need a clear followup.
This all sounds very two weeks ago, which should be majorly depressing for everyone involved in the latest bailouts.
Meanwhile, Paul Krugman makes a good point today that all this is getting less attention that it should in the press due to the debt ceiling stuff. His assessment is killer: “In short, what the markets seem to be seeing is disaster on the periphery and the Japanification of the core.”