News Italy follows Greece into bailout

[rynnor]

As I type this the 10 year Italian bonds are up to 7.46% - which is well into unsustainable so a bailout now looks inevitable. The ECB will probably have to create Euro's to pay for everything - effectively devaluating the currency - good news for UK inflation and cheap summer hols...

 

[ECA]

Good news for cheap winter hols as well

 

[Chilly]

It's bad news for everyone involved. You wont be able to afford to go on holiday because the international markets you sell to, or your companies sell to, or your suppliers sell to will shrink massively and leave you skint.

/edit
however, it has to happen sometime so it might as well be now.

 

[rynnor]

It's bad news for everyone involved. You wont be able to afford to go on holiday because the international markets you sell to, or your companies sell to, or your suppliers sell to will shrink massively and leave you skint.

In the case of the UK we are net importers so the drop in prices of our major supplier is good news for us overall - it may have negative effects in some industries but these will be outweighed by the positives.

 

[caLLous]

Slightly hysterical thread title, it hasn't happened yet.

 

[rynnor]

Slightly hysterical thread title, it hasn't happened yet.

Its now become inevitable though - largely due to contagion from Greece.

 

[rynnor]

The ECB has waded in buying tons of Italian bonds to lower the yields - tough to see that working for long though...

 

[Chilly]

In the case of the UK we are net importers so the drop in prices of our major supplier is good news for us overall - it may have negative effects in some industries but these will be outweighed by the positives.

Yes, we are a NET importer, but we still export billions of pounds of goods a year. We'll just end up increasing the trade deficit if the pound grows in strength, which isnt a very good thing, since it means money is leaving the country rather than arriving in it at an even greater rate than it is today (something like £10bn a month atm).

 

[rynnor]

Its a bit more complicated than that though - very few manufacturers build from scratch so if their suppliers are in the Euro they get cheaper parts etc.

 

[Chilly]

Fair enough, but a reduced market is a reduced market. there will be fewer people buying fewer things == less money for everyone.

 

[rynnor]

The ECB got it as low as 7.24 but its rising again now - 7.26 - traders say the ECB is the only buyer so its burning through its reserves today.

 

[Ctuchik]

Domino effect incoming here? If Italy does a Greece with this it's likely more countries will follow....

Way offtopic:
I know it's stupid, but all i can think of when i hear that the Euro might be in trouble is "cheaper games on Steam!"

 

[rynnor]

The yield on UK bonds is dropping - clearly seen as a safer bet - the french have to pay 50% more than us to borrow now.

 

[caLLous]

http://www.bbc.co.uk/news/business-15686580

This sort of shit really doesn't help.

 

[Moriath]

fail fail fail fail fail euro will fail soon i hope

Better to live in interesting times

 

[Turamber]

fail fail fail fail fail euro will fail soon i hope

Better to live in interesting times

Sure, if you're a child.

 

[Ch3tan]

fail fail fail fail fail euro will fail soon i hope

Better to live in interesting times

Yeah, wish economic woe on millions of people! Idiot.

 

[rynnor]

Yeah, wish economic woe on millions of people! Idiot.

A bit of economic woe now might be better than some horrible Euro megastate in the future.

 

[Deebs]

Check back in 3 years, the world will be completely different from many aspects. Personally I would, if it was viable, let them fucking rot. Why should my tax money go toward helping countries which didn't collect enough taxes or just thought fuckit, let's spend, money is nothing as are debts. Oh, deja vu, Labour government.

 

[Embattle]

Yeah, wish economic woe on millions of people! Idiot.

So far the piece meal attempts to stop it have caused more of it.

 

[Zenith.UK]

I quite liked this article from The Register yesterday...
http://www.theregister.co.uk/2011/11/10/were_all_doomed/

In many ways it makes easier sense than all the learned people talking about it on TV.

 

[rynnor]

Its back above 7% again now - as soon as the ECB stopped manipulating the market it crept back up - the markets are looking for a bailout.

 

[ECA]

To be honest the euro is such a giant clusterfuck the only way out of this I see is unified bond market for the euro, or merging all these countries into 1 budget, or dismantling the euro.

Continuing the current path, this will just happen again and regardless the eurozone will have stagnant growth for the next 50 years+

 

[rynnor]

Spanish bonds took a hit today and lots of other 'safer' countries - france is now paying 75% more to borrow than the UK - up from 50% more last Wednesday...

 

[Kahland]

Let god sort them out!

 

[rynnor]

Let god sort them out!

But she's dead!

 

[Chilly]

Let god sort them out!

You've gotta shoot em first

 

[Embattle]

Nice little graphic - http://www.bbc.co.uk/news/business-15748696

 

[Nate]

Hmm, so we owe the US 578 billion, and they owe us 834? How does that work

 

[DaGaffer]

Nice little graphic - http://www.bbc.co.uk/news/business-15748696

Very interesting. So the mostly nationalised banks in Ireland owe the mostly nationalised banks in the UK pretty much the same amount as the UK owes them...