Italian Bonds Continue Down With Hardly a Peep
The interest rate on 10-year Italian bonds rose to 7.27%. That means the value of the bonds went down (when the interest rate rises on a bond, the principle goes down). Only days ago, when the rate on the 10-year Italian bond first broke above 7%, the markets reacted strongly - almost in a panic. 7% was supposed to be unacceptable, unsustainable. The Euro would collapse. The European Union would unravel.
While markets are sinking today, I wouldn't call it a panic. So it's almost as if people are getting used to the idea of 7%+ Italian 10-year bonds. As things get worse, people "get used" to things and so the unfolding disaster proceeds without a peep.
"Disaster"? Well, I don't know for sure, but it really is starting to seem like we're in a new phase of the biggest economic and financial crisis of our lifetime. We'll have to see how things unfold next week, but this week - expected to be an up week for the U.S. stock market as it typically during Thanksgiving week - isn't turning out so good. Is the stock market "speaking" to us about hard times ahead?
Time will tell.
While markets are sinking today, I wouldn't call it a panic. So it's almost as if people are getting used to the idea of 7%+ Italian 10-year bonds. As things get worse, people "get used" to things and so the unfolding disaster proceeds without a peep.
"Disaster"? Well, I don't know for sure, but it really is starting to seem like we're in a new phase of the biggest economic and financial crisis of our lifetime. We'll have to see how things unfold next week, but this week - expected to be an up week for the U.S. stock market as it typically during Thanksgiving week - isn't turning out so good. Is the stock market "speaking" to us about hard times ahead?
Time will tell.
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