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Old 12th Jun 2012, 22:34
  #1460 (permalink)  
Join Date: Oct 2010
Location: Wayne Manor
Posts: 1,516
I predict the markets will call time on this madness in due course.
madness is apt...

Mario Monti insists Italy 'will not need a bailout'

Italy will not need a bail-out to survive the economic debt crisis, prime minister Mario Monti declared on Tuesday, amid fears Rome may be forced to call for aid.

Italy's debt worries add urgency to Merkel's dream of integration

Mario Monti, the Italian prime minister, is due to meet France's Francois Hollande on Thursday in Rome and protecting Italy from Spanish contagion ought to be high on the agenda.
to call for aid.
There simply isn't enough money under current bail-out arrangements to rescue Italy should it require help. And markets are once more preparing for that eventuality.

Rome became a fully paid-up member of the 6pc-plus club on Tuesday as its cost of borrowing jumped to 6.14pc. Its predicament is different from Spain's and Spain's was different from Greece's. But that didn't stop Spain needing financial aid.

Italy's budget deficit is not the primary concern (although its shrinking economy is a worry) but its ability to service 2 trillion (1.6 trillion) of debt more as a share of GDP than anyone bar Greece and Japan. It has to borrow 35bn a month.
wasn't it a case that before the 100bn bailout, Spain didn't need a bailout.

of course, under the alternate reality of the EU, Italy could ask for maybe 150bn and call it 'aid' or a 'loan' or a 'teaspoon', or any other random word and technically they haven't asked or required a bailout.

if it walks like a duck....

Last edited by stuckgear; 12th Jun 2012 at 22:39.
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