Thursday, 10 November 2011
A New Phase
Just my luck, on the day the Eurozone entered a new and more dangerous phase - yields on Italian Bonds smashing through the psychologically important 7% figure yesterday - I found myself on family business which meant I had no internet access.
Not so much as hit the buffers, the Eurozone has instead crashed right through them, as Italy enters bailout territory. One problem, it's too big to bailout. To illustrate the seriousness of this new phase, an orderly breakup of the Euro is now being seriously discussed, in effect jettisoning the peripheral countries and France and Germany going for a smaller Eurozone. But, given the glacial speed of EU decisions, events look set to overtake them - contagion is already reaching Spain and France today. It looks set to be another bloodbath.
One thing's for sure, we are witnessing European history in the making.