Now We Return To The REAL Crisis In The World
Aug. 1, 2011
The vote to raise the debt ceiling isn’t a sure thing. But just for the moment, let’s assume it happens.
That means it’s time we returned to the real crisis in the world, and that’s Europe.
It was a little over a week ago that the EU held a big bailout party for Greece, unveiling a brand new and bigger bazooka, designed to restructure Greek debt, and prevent the ragin’ contagion from hitting Italy and Spain.
The optimism last for like a day. Since then, Italian stocks have marched lower (lead by financials) and yields, after initially plunging) are threatening to hit new highs (today, for now, Italy is having a fine day).
This is extremely ominous. And while the US situation can be resolved by a single (highly political) vote, Europe is a real, genuine economic crisis, with countries teetering on the bring that really may be too big to save.