In 2008 we had a financial melt down and it set major milestone for the financial industry. This year yet again I fear this is coming, only thing is not in here but it is in Europe. It does not look like scary but it is coming. Earlier (still going) there was a problem with the Greece debt, they are about to default their debt and some Euro leader suggest the solution. This will fix issue temporary but it will come back next year. To make things worst, Italy has a debt problems now and their bond yield is sky rocketing to 7%. Click here . So two european countries are in the same problem. The question is who will be the next and when. Portugal, Spain, Ireland ? France has a most leverage in Italy. If thing happen bad in Italy France will feel the heat just like most or US bank feel the heat in 2008. Nobody know how much, when, who. Goldman Sachs keep aside 2.3B for the problems in Italy. Regardless of economy there is not much movement (upside) in the market for next 6-9 months.
Unlike Greece, Italy is too big to rescue...
So what? Well, this might to one or more of followings:
- Plunge global economy - global recession.
- Another decade lost, in a japan style.
- Big effect in real estate market in the Europe
- Euro fails - break the eurozone
Be careful.
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