Thinking About Italy

The EU bailed out Greece, which is the equivalent of throwing money down a sinkhole. What are the chances that they let Italy go? Italy is not a lost cause and they are working on getting their house in order. The market is not yet at an extreme but if we get there and we are looking into the abyss, I don't believe they will let Italy go. Have a good night.

1 comment:

frank r said...

Right now, the chances of letting Italy fail are nil. But it is precisely because the EU is behaving stupidly (throwing money down the sinkhole that is Greece) that their future actions are unpredictable. The EU is a political organization and politicians have been known to go from stupid to really stupid. So who knows? My own bet is that the rentier class continues to dominate for quite some time, both in Europe and the United States, and thus the bailouts will continue, but I wouldn't be surprised if I was wrong.