Friday 15 July 2011
Greek and Italy Downgrades
With Ireland and Italy heading either deeply into junk bond status or hovering precipitously over it, the Euro is finally doomed.
Now, this has been said before and I fully expect a healthy amount of QE to be unleashed to settle the markets before the year is out (this is the only way to save the ECB too, so watch out those feeling bearish and think through the logic of those in charge!).
However, it's over. The PIIGS cannot survive in the Euro and need to devalue into either euro-lite or their old currencies.
After the whole News International stories die away, I don't have much doubt predicting what is going to dominate the news for the rest for 2011.