The woes in Europe are too much for the market to handle. I believe the EU will act but it might take a worsening of the crisis in order for this to happen. It baffles me why they have not stepped in to help Italy given that Italy has passed severe austerity measures.
Italy's deficit was only 4% of GDP to start with. Italy is fixable and there is no reason to allow this debt market stress to go on a day longer. Hopefully, they will come to their senses soon. I am positioned long heading into the weekend, so I am clearly talking my book. Have a great weekend.