From “The Telegraph” – “Italy sold €9bn of six-month bills at an average rate of 3.25pc, down from euro-era highs of 6.50pc at a similar auction last month. Demand also rose, with 1.67 bidders for each bond, compared with 1.47 in November.”
“These actions in reality makes the problem worse by creating a greater solvency issue with the ECB – which when push comes to shove the German people will not backstop, hence the Euro is no longer a safe currency.” (BLOG COMMENT)
This is the big and in fact ONLY question. Many think Merkel will in the end have NO CHOICE. The EU political elite has manoeuvred Germany into a position whereby if Germany doesn’t backstop the ECB then the latter will eventually default. The “markets” clearly think this otherwise they wouldn’t touch Italy with a gondola pole …..
Very clever ….. if the Germans DON’T step in then they get the entire blame ….. with insults ranging along the whole spectrum from “un-European” to “Nazi”.