Italy: Borrowings costs hit record as Berlusconi teeters on collapse

[Ought Six]

http://www.adnkronos.com/IGN/Aki/Eng...619120495.html

[Ought Six]

http://www.bbc.co.uk/news/business-15622042

Italy 'needs 300bn euro loan to stand still'

[Glenn 50]

Premier Silvio Berlusconi has promised to resign after parliament passes economic reforms demanded by the European Union, capping a two-decade political career that has ended with Italy on the brink of being swept into Europe's debt crisis.

http://www.nzherald.co.nz/business/n...ectid=10764753

[leistb]

According to Barclays; stick a fork in Italy, she's done. Mathematically past the point of no return.

[Greta]

Originally Posted by leistb

According to Barclays; stick a fork in Italy, she's done. Mathematically past the point of no return.

Someone on Zerohedge wrote: "I'm gonna need an explanation from some cartoon bears." Seems like I read somewhere when the yields are above 7% then that is the point of no return. But it really doesn't matter. As long as Greece and Italy can keep pretending like they are doing someone productive and use the news media as their outlet, then perhaps the markets will buy it for a little while longer. But not much longer, eventually the game will be over, then it will be a quick down hill spiral.

[Greta]

Apparently, the yields are now above 7%. Just saw this on Reuters:

Italian borrowing costs reach breaking point

[Greta]

Euro Zone Has No Plans to Rescue Italy

[vince08]

http://www.bbc.co.uk/news/business-15652708

Italy borrowing costs hit record 7%

The 7% level is widely viewed as unsustainable and was the point at which Portugal, Greece and the Irish Republic were forced to seek a bailout.

[Kassy]

They've got to solve it soon because they're to big to bail.

Appoint some competent leader & introduce real reforms. This will bring down borrowing costs.

They can get so much more out of their economy if they'd only try.

[Sonny]

Banks to dump more Italian debt
Fri Nov 11, 2011 7:05am EST

The yield on 10-year governments bonds surged as high as 7.5 percent this week, the most in the history of the eurozone and the highest for Italy since 1997. Selling intensified after LCH.Clearnet lifted its margin requirements on Italian debt. The 10-year Italian bonds currently trade at 85 cents on the euro.

According to people close to some of the bank disposals, the efforts of the European authorities to ensure that a Greek debt restructuring would not trigger CDS payouts has driven much of the bond selling. Unable to confidently hedge their exposures, many are choosing to sell - even at a loss.

!

[Sonny]

http://www.nytimes.com/2011/11/12/wo...ro-crisis.html

ROME — With Europe under mounting pressure to act quickly to tackle its debt crisis, the leaders of Italy and Greece moved forcefully on Friday to reinvigorate their governments and show their sincerity about economic austerity. Financial markets rallied on the news

The Italian Senate approved a package of austerity measures, a first step toward easing Prime Minister Silvio Berlusconi from office,

Days of political turmoil roiled bond markets this week, pushing the cost of borrowing in Italy to levels that economists regard as unsustainable and adding to the pressures on politicians. The yield on Italy’s 10-year bond, a barometer of investor anxiety, eased back to about 6.6 percent Friday after having exceeded 7 percent at the height of the crisis.

[Ought Six]

Please put future posts on Italy in the European Union Related Content thread stickied at the top of this forum. Thanks!