Italian Banks’ Selloff Takes Bite Out of Euro!
- This sovereign debt crisis is not over. The Greek parliament will debate the austerity measures this coming Monday-Tuesday. Thereafter, it will be put to a vote. If the vote is negative, the currency market will quake.
- The reality is: Greece will default sooner or later. Even if the latest Euro$12B bailout goes through, it will only last them till end August. As much as Euro$18B of repayment is due by then. How will Greece resolve this? The can they kick down the road will end up as a bucket that the Eurozone will kick. The contagion effect of a Greece default is calamitous and has worldwide ramifications because of the derivatives financial weapons of mass destruction.
Italian Banks’ Selloff Takes Bite Out of Euro
BY DAWN KISSI, http://online.wsj.com/home
The euro sank to a record low against the Swiss franc as a halt in the trading of some Italian bank shares fed fears that Europe’s debt crisis might be spreading. The single currency fell as low as 1.1844 Swiss franc over fears the Greek sovereign-debt troubles were gaining a larger foothold outside its borders and in the region’s banking system.
Trading in some Italian bank shares was suspended because of “high volatility” in Milan after Moody’s Investors Service said it was considering downgrading the banks’ ratings. That sent the yield on Italy’s sovereign 10-year debt to 2.13 percentage points …
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