The Euro Is Unravelling With Severe Repercussions For Everyone (This Includes You)

Italy and Spain are likely to be forced to accept some international help as the cost of their debts has risen to unsustainable levels of about seven per cent. The Telegraph

Italy Is Closer To Collapse Than Anyone Realized, And So Is The World -- Business Insider

Some stories in European press (La Stampa - Zero Hedge link) suggest that Italy is working on a very big loan package from the IMF. I have no doubt that there are ongoing discussions. There has to be. Either someone puts a finger in the dike or Italy goes tapioca.

That thought is difficult for me to fathom. How could we be so close to the brink? At this point there is zero possibility that Italy can refinance any portion of its $300b of 2012 maturing debt. If there is anyone at the table who still still thinks that Italy can pull off a miracle, they are wrong. I’m certain that the finance guys at the ECB and Italian CB understand this. I repeat, there is a zero chance for a market solution for Italy. Either the ECB (aka Germany) steps in and underwrites the debt with some form of Euro bonds or the IMF (aka the USA) steps in with some very serious money.

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More News On the Euro Crisis

Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout -- Daily Mail
IMF drawing up £517bn package to save Italy, Spain and the euro -- The Telegraph
IMF readying 600 billion euro bailout for Italy -- Business Recorder
Sources: IMF to Offer Italy a 600 Billion Euro Bailout Via ECB Funding -- Economonitor
Germany, France plan quick new Stability Pact: report -- Reuters
Germany, France eye radical push for euro zone integration -- Money Zone
Euro Zone Leaders Weigh New Budget Rules -- New York Times
Germany, France examine radical push for eurozone integration -- Reuters
World's biggest banks brace for a Euro Zone split -- Economic Times/New York Times
European debt crisis: Investors’ confidence shows signs of crumbling -- Washington Post
Is a Eurozone breakup now inevitable -- and imminent? -- L.A. Times
So what happens if the euro breaks up? -- John Dizard, Financial Times