haspete's - aint no gfc - monday, page-11

PP

Frozen money market is a possibility in the EU - last week it was showing indications of this:

Europes money markets freeze as crisis escalates in Italy & Spain

This is why (by and large) the market plunged IMHO - b/c the EB didn't step in to buy Spanish & Italian bonds.

They have said they will now - but confidence is already frail - so we will have to see - if it works b/c Spain is "too big to fail" - Italians themselves largely fund their debt (they should as the tax avoidance there is absolutely ridiculous- so they have more than most - haha) and so many are saying Italy not so much the crux of the problem.. That's my understanding at least.