EU Can't Catch A Break

Sovereign spreads are widening once again as countries like Italy are trading where they were before  the most recent bailout. Investors are assuming that if Greek investors can take a haircut than investors in other countries can  as well. I believe this is more troubling than what is going on here with the debt limit but I am not too worried. This is precisely why the EFSF is now allowed to be used for open market transactions. It seems like they might need to use it sooner than thought.

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