At some point, it just gets too expensive for a debt-laden country to borrow money buy issuing bonds on the bond markets. That’s when they ask for some help from a higher power.
In recent weeks, Italy has seen its bond yields and spreads explode higher. This has markets wondering, “Does Italy need a bailout?”
BloombergBRIEF Economist Michael McDonough.put together a chart of 10-year PIIG bond spreads against the 10-year German bond. He also indicates where three of those PIIGs requested or were approved for a bailout.
So, is Italy next? Check out the chart: