Greece is a Sideshow, Italy is the Problem

Italy is growing less and less able to borrow money cheaply. The interest rate on Italian 10-year maturity debt rose above 7% yesterday. This is because lenders (buyers of Italian gov’t bonds) are becoming more fearful about their eventual repayment – if Italy defaults, they don’t get paid.

This article at Bloomberg covers it all very well.

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This entry was posted on Thursday, November 10th, 2011 at 10:31 am and is filed under Financial Crisis. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.