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[nodle]

It's gonna be an interesting 2012! or sooner.

Italian bond yields have spiked today, as of now we're at about 7.4% and there is no end in sight.

A live chart:

http://www.bloomberg...PGR10:IND/chart

Solution: ECB prints money, mass asset purchase scheme, brings yields down. The problem with this is that it socialises banking failures in France and is seriously morally hazardous.

Other outcome: Eurozone fails some time this week and it all comes crashing down and causes a short sharp worldwide recession as the EU consumer market falls through the floor.

Other, other outcome: France, Spain, Italy, Greece and Portugal leave the Eurozone. There is no real precedent for this, the closest one is when Britain fell out of the ERM and that was pretty shocking over there.

http://money.msn.com...61-9b4138120365