Showing posts with label euro periphery crisis. Show all posts
Showing posts with label euro periphery crisis. Show all posts

Tuesday, May 14, 2013

Sunday, May 5, 2013

5/5/2013: Things are going according to plan... in Italy & Germany


That euro area 'policy' for dealing with the crisis is working marvelously, yeah?

Source: Euromoney Country Risk
Note: lower ECR score = higher sovereign credit risk

Yes, Italy's bonds are trading at much lower yields, and the country is issuing new debt at lower costs... but how much of that has to do with something / anything that Italian Government has done, as opposed to the overall shifts in markets sentiment / liquidity flows, who knows? One thing is for sure, absent yields changes, Italian fundamentals are getting worse, not better. Ditto, between, for all other 'peripherals'.