MyunderratedLife (78.35)

Bailing out Italy

November 10, 2011 – Comments (9) | RELATED TICKERS: SAN , DB , TEF

I've heard that Italy cannot be bailout because the cost to the ECB would be too great.  With Italy's outstanding debt sitting at close to 2 trillion Euros, people are saying the ECB would not be able to handle it..

It seems obvious to me that if it happens, why wouldn't they do a partial bailout?  Just the word "bailout" would calm markets and likely reign in the widing spread for Italian bonds...  Heck, even just insuring a percentage of Italian bonds would likely do enough without requiring any outstanding payments...  [more]