• Italy not only has a very large public debt of over 130% of GDP, its banks are riddled with bad debts as well.
• While the ECB has softened the immediate threat from the public debt, together with the bad bank loans and a volatile international climate, problems could yet resurface.
• The trigger could be the constitutional referendum on December 4.
• We’re keeping a watchful eye on the 10-year Italian bond yield, already rising with other developed country bond yields.

The Indicator That Could Spell Trouble