Photo: Wikimedia Commons
This is a bad, bad news day.There are signs that hell is really about to re-break loose in Europe, barely a week after the continent thought it had successfully bailed itself out.
There are reports that the European Financial Stability Fund may not be ready to loan Greece its next bailout tranche, in part because weaker European contributors (like Italy and Spain) may not be able to afford their payments into it.
In other words: A fund that’s comprised of a bunch of sub-AAA nations may actually be… sub-AAA.
As Tracy Alloway recently put it at FT Alphaville, the EFSF is the CDO At The Heart Of The Eurozone.
Yields are widening across the board. Greek 2-year debt is back above 30%.
The euro is getting smashed, especially against the Swiss France.
Oh and a couple of other things: Controversy continues to embroil Italy’s finance minister today (some corruption thing) and the PM of Spain just called early elections.