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...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.