The Telegraph - Italy's borrowing costs leaped to their highest level since December in a government bond sale this morning, as concerns about Spain and the state of Europe's economy continued to hurt the country's finances.
The domino effect keeps going. Inexorably. Ireland. Then Greece. Then Portugal. The Cyprus. Then Spain. Now Italy.
I wrote in 2003, one year after the introduction of the euro, that the Union could not work.
Productivity differentials were to different for Italy or Spain to compete with the northern European countries.
The culture - believe me, I know - is too different. They could not and will not be able to assimilate the people of the southern countries with those of the north. Italy after more than 100 years cannot assimilate the north and the south of its own country.
Spain and Italy had a lot of fun borrowing at low rates. Like our home owners. There is a time, however, the markets ask if you have the money to repay the loans.
Gradually and steadily we are witnessing the dismemberment of a disastrous experiment. What is very sad is that the people are paying while inept politicians keep strolling around in black chauffeured limos.
No comments:
Post a Comment