Italy is too big to fail

A segment on the Dutch news program Nieuwsuur prompted this post.

Earlier today, I was looking at 10-year yields and noticed Italy jumping to over 3.7%. As I write this, the yield is 3.713%. And that's up from a low of 1.633% in the past year. I believe it's the bond vigilantes that are going to force the Italian government to cave on its tete-a-tete with Brussels. It's only a question of timing.

But Italy is too big to fail. And I say that because an Italian politician in the Dutch TV segment made exactly those comments, prompting this post. Look at the clip here. What does that mean though, too big to fail?

I would say it means that Italy, as a G7 country, a founding EU member, and home to the largest government bond market in Europe, is simply too large to treat with the same level o...


As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More