Tuesday, 27 December 2011

Sovereign Crisis: Quote of the Day

"Italy ... borrowing at a rate of 7% ... in other words, the markets trust the Italian state – with its own tax-raising powers – less than it does a couple in Kettering who'd quite like a new kitchen."

Aditya Chakrabortty, Guardian

: did we mock too soon ?


Budgie said...

Well, it possibly is connected to the E489 bn QE bung to the banks from the ECB.

But then as you know I don't think the euro is going down anyway. Especially since our political masters in Brussels can engineer a coup d'etat in both Greece and Italy - and get away with it.

andrew said...

short dated loan -
wait for the 10 year one

however on an objective (?) basis i would say that a govt that owed 120% of gdp in a currency that it cannot devalue or inflate is possibly a better bet than one that oves about 95% that can inflate - devalue - the usa.