Why Italy’s Debts Are Europe’s Big Problem
Ok, here’s an interesting article that sort given an idea of how a indebted country can cause contagion. Italy, if you know is sort of a problem child/basket case of Europe. it has high debt, anemic growth, a troubled banking system, aging population, fractured polity and a 100 other problems.
Ever since the 2008 crisis, it never really recovered and has been careening from one crisis to the other. Here’s how its Real GDP has grown
Vs the other Eurozone countries
This article illustrates how European Banks, largely French and German have loaded up and debt and how a crisis in Italy can create a sell-off in bonds forcing these Eurpoean Banks holding Italian bonds into massive write offs