The euro crisis is not over, Portuguese edition

Remember how French President Hollande was saying a month ago that the euro crisis is over? Well, he was wrong. Today Portugal's yields on 10-year paper vaulted to as high as 7.9% before settling back down again. Just two months ago, yields were at 5.23% and Portugal was going to market with a 10-year bond offering.
The Socialist opposition leader is saying that the country needs to abandon austerity as unemployment, business bankruptcies and non-performing loans skyrocket. Meanwhile the government is following the dictates of the Troika by pursuing an aggressive and front-loaded austerity campaign with the hopes of qualifying Portugal for an OMT-style exit from the current bailout program. It's not working.
I never believed this approach would work but events on the ground had been prov...


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