As Goes Greece, So Goes …

The Euro 1999 – 2012 R.I.P.

By Jeff Harding 

Italy is the world’s eighth largest economy and it has one of the highest levels of public debt-to-GDP in Europe:

Greece is ranked the 28^th largest economy in the world. By comparison Ireland is ranked 36^th.

Needless to say, Italy represents a flash point in the euro zone as bond vigilantes have gone after it for the past two days. Fear is contagious as they say. Greece is the ostensible problem and the stated reason for today’s EU emergency meeting, but they will discuss Italy. Italy’s debt costs are still relatively low, but the Bund spread is growing and their cost of debt relative to the amount of debt (primary balance) is a problem.

Is this something we here in Fortress America should worry about? Yes.