Quote Originally Posted by CaptainNemo View Post
Behold! The Italian Banking Crisis!

snip ... The real problem comes with Italy, which is also failing and has a debt-to-GDP ratio estimated to be over 133% and rising. If Italy goes, it will be followed by Spain and France.

Herr Schäuble cannot force these major creditors into line so easily, because at this stage the whole Eurozone banking system will be in deep trouble, as will the German government itself.
I believe that this scenario is a genuine concern for the Global Economy.

Usually 'Sovereign Debt' is sacrament, but for there to be an Italian bailout, the holders of those Sovereign Bonds, mostly Germans, have to take a 'haircut' and they aren't about to do that ... hence the impasse.
.
.