Italy under fire in widening euro debt crisis

Italy under fire

Financial market pressure on Italy intensified on Tuesday, sucking Europe's second biggest debtor nation deeper into the euro area danger zone and prompting Italian authorities to call emergency talks.

So now Italy becomes the latest country to feel the heat of fiscal stress.

Italy's stock index fell to its lowest in more than 27 months, dragged down by banks with a heavy exposure to Italian debt. European shares hit a 9-month low amid worries that slowing economic growth will make it even harder to overcome the euro zone's debt troubles. "The fear of the market is that the world is going into recession again... and in the euro zone the peripheral markets are the ones that will suffer most," said Alessandro Giansanti, strategist at ING in Amsterdam.

How much longer can the world's financial markets prop up this illusion? It's amazing how fast countries are falling to the financial barons like Rothchild and Rockefeller.

It shouldnt surprise us too much. It certainly seems the Euro was established to profit from people's wealth in this exact way...

The questions is:

Will the EU recognize how big a failure Uniting sovereign European nations was?

and if so, Will they simply work to expand, under the horrible misconception of "Too big to fail", or will they allow the independence within Europe?

My guess is they will go with the first option...

There's no way out for the countries on the economic fringe (PIIGS). So they will fall under the only viable economy in the EU (Germany). Ultimately, Germany will end up bailing out the various faltering economies and will consolidate a great deal of power in the EU as a result. Even the UK could easily find itself having to cozy-up to Germany if things stay on the current track.

reply to post by jtma508


Its possible but equally is that the germans will tire of bailing out the rest and it will all come apart. The germans don't want to be dragged into destitution by southern europe. Elections are soon and the german public has had enough of putting its hand in its pocket already.

I doubt the euro will still be here for much longer.

Italy has so much debt that I doubt they can be bailed out. The Germans won't tolerate having to finance another large bailout (they very nearly didn't help Greece) and no other EU country can raise the amount they need.

I think Italy will end up defaulting and either be booted out of the EU after they declare a new government and wipe the slate clean or they'll give up what little sovereignty they have left and the EU will run them like administrators.

/paranoia

Situation continues to worsen. EU leaders to issue another statement on the situation in the financial markets this afternoon.

"you don't need to see our identification, these are not the govt debt figures you are looking for, move along"

Unless Berlusconi has some latent Jedi skills this is not gonna work. Goodbye euro, been nice knowing you.

Originally posted by Chilled Zen
Italy has so much debt that I doubt they can be bailed out. The Germans won't tolerate having to finance another large bailout (they very nearly didn't help Greece) and no other EU country can raise the amount they need.
...

You're right there's no way at present that the EU could finance a major bailout, such as Spain or Italy.

So much for perpetual growth, full employment and the magic of capitalism eh?...