Sounds like business as usual in politics.
Anyway it really seems that banks are overall pulling a lot of money out of gov. bonds, both due to internal and external reasons. Even the "Germanic" countries (Austria, Belgium, Germany, Luxenbourg and the Netherlands) plus Finland have to pay now quite a lot more this week due to fears and demand.
Italy had to pay roughly 8% this week. Personally I'm buying as we are reaching 10-11 % yields for short-term bonds running only a bit over a year. I can not imagine Italy leaving the Euro. Making a haircut for Italian gov. bonds denominated in Euro would cause a massive outroar as so many Italians hold them. Leaving the Euro zone without making a haircut would however greatly increase the debt as a new Lira can just suffer against a Northern Euro. At least this was always the case with the old Lira, which was devalued (avoiding a internal uproar) quite a number of times to make the economy more competitive. The danger of a massive outflow of Italian captial would be a very real threat too, something already happening in Greece where so much Greek money already left the country toward Switzerland and Germany.
Hungary, who still has the Florint is now rated below investment grade while once gain the currency is tailgating against the Euro. In this case I understand at least partly the rating agencies, as the recent government is really a nationalistic mess in many ways.
In general the situation is of course bad. While it is good that at last chronical economical problems get tackled in quite some countries doing so now is in the short- or medium term depressing the economy and will influence the overall growth long-term also negatively. Stimulating the economy or better avoiding drastic cuts would help the real economy a great deal but will be hard to finance unless the ECB does it's part.
P.S: I do think that the big three rating agencies are partly upkeeping the top rating for the US due to massive political pressure. While in theory it would be not too difficult to balance the budget especially due to higher taxes it seems almost impossible to do so due the polical dead-lock...
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