RT – “Back to Feudalism”; Bailout Fallout – Italy, Spain next on Eurozone crisis ‘death list’?: In Europe, borrowing costs for Italy and Spain surged drastically, as traders rush to rid themselves of risky investments. Crisis talks beween Italy and the EU are already underway, as its bond yields reached their highest level since the Euro was adopted. For more on the implications of this RT talks to economics journalist Patrick Young.
- The Telegraph – The ECB throws Italy and Spain to the wolves; The European Central Bank has abandoned Italy and Spain to their tortured fate: Its refusal to act in the face of an existential threat to monetary union has set off violent tremors across the global financial system, raising the risk that the crisis will spiral out of control.
- ZeroHedge – Italian, Spanish, Belgian Spreads At Record, Intesa And Dexia Limit Down, Markets Plunge, Cats And Dogs Living Together…: The meek and somnolent shall inherit nothing, because Europe just came back online and the apocalypse has resumed. Italian, Spanish and Belgian bonds opened lower, with spreads to Bunds surging the most since before the euro was introduced in 1999 (but before it was abolished in 2012).
- CNBC – Is Italian Bond Selloff Becoming Self-Fulfilling?: Again and again we have heard that speculators should not underestimate EU leaders’ resolve to protect the euro … project but time and again we have witnessed disagreements between individual countries and Jean-Claude Trichet’s European Central Bank that allow speculators a free hand to short the sovereign debt of Greece, Ireland, Portugal and now Italy and Spain.
- Mish – Bloodbath in Europe Follows Bloodbath in Asia; Don’t Worry, It’s Orderly; First Rule of Panic: Bond yields of Italy, Spain, and Belgium continue their relentless march higher. Yields are at record or near-record highs in all three countries relative to Germany… Please remember the first rule of panic: If you are going to panic, do so before everyone else does.
- The Guardian – Eurozone fears send shares in Lloyds, HSBC, RBS and Barclays plunging: Echoes of 2008’s financial meltdown as uncertainty mounts over European debt
- Mish – Another Major Feud Between the German Central Bank and the ECB Over Resumption of Bond Purchases; Will Germany Leave the Euro?
- Business Insider – Eurozone Leaders To Hold Emergency Discussions On Crisis Today
- The Guardian – Police raid Milan offices of Moody’s and Standard & Poor’s: As stock and bond markets across the world tumbled on fears about Italy and Spain, it emerged that police acting on orders from prosecutors had raided the Milan offices of rating agencies Moody’s and Standard & Poor’s as part of continuing investigations into their role in the recent financial turmoil.