The story continues

The fact that the EFSF was forced to delay its own bond issue on Wednesday has also hurt sentiment, as it calls into question not only its ability to fund Ireland and Portugal but also its value as a guarantor.

The Italian ten-year yield is now at 6.399, unsustainable territory, there is more here and here.  France and Germany have jointly “demanded an answer” from Greece, about continued eurozone membership, but it’s not clear who will be around to (non-credibly) answer that question.  Twitter is awash with rumors that Papendreou will be gone very, very soon.  They just dismissed all of the military leadership.  I believe it is now understood in Germany and France that they will be cutting Greece loose.

Here is one way to put it:

Italy is borrowing at 6.4% to lend to Greece at 3.5%. this will end well.

Meanwhile in Greece, via several loyal MR readers, there are more registered Porsche Cayennes than people reporting incomes over 50,000 euros a year.  You may recall my earlier prediction:

“Enter democracy, stage right” is the next act in the play.


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