Is Italy About To Ask For A Bailout?

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:

PIIG Bond Spreads

Photo: @m_mcdonough

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