REMINDER: Here's Who Will Get Crushed If Italy Goes Bust

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Italy is fast becoming the next Greece. The country has 120% debt-to-GDP ratio, and its debt now stands at $2.2 trillion.

While a disorderly Greek default looks increasingly likely and has been hurting global markets, the Italian economy is nearly seven times as big as Greece’s, and it’s fast looking like the next domino that could fall.

10-year government bond yields are at 6.14% now, up from the 52-week low of 3.6%. And there was the dreadful PMI number showing contraction in Italy’s manufacturing sector. Under pressure prime minister Silvio Berlusconi is trying to usher in reforms but no one thinks he can turn the economy around.

Swiss government debt exposure to Italy totals $5.2 billion

Total lending exposure: $21.4 billion

Source: Bank for International Settlements

Spanish government debt exposure to Italy totals $10.7 billion

Total lending exposure: $35.8 billion

Source: Bank for International Settlements

UK government debt exposure to Italy totals $12.7 billion

Total lending exposure: $68.9 billion

Source: Bank for International Settlements

U.S. government debt exposure to Italy totals $14.38 billion

Total lending exposure: $44.1 billion

Source: Bank for International Settlements

Belgian government debt exposure to Italy totals $17.3 billion

Total lending exposure: $24.9 billion

Source: Bank for International Settlements

Japanese government debt exposure to Italy totals $29.8 billion

Total lending exposure: $41 billion

Source: Bank for International Settlements

German government debt exposure to Italy totals $51 billion

Total lending exposure: $164.9 billion

Source: Bank for International Settlements

French government debt exposure to Italy totals $105 billion

Total lending exposure: $410.2 billion

Source: Bank for International Settlements

More than 50% of Italian debt is domestically owned

Italian government debt is at $2.2 trillion or about 120% of GDP. The government owes almost $37,000 for everyone in its country.

Source: Reuters

While Germany has been cutting its exposure to Greece, France's exposure has surged...

Now see how Italy got to be so bad...

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