Italy Versus The Markets, A Very Predictable Outcome

  • The Italian populist government is defying the markets at exactly the wrong moment, with growth and ECB bond buying waning.
  • Its proposed budget will increase the already sky-high debt/GDP ratio further, and this can easily set off a confidence crisis, given a number of vicious cycles that are looming.
  • Italy can’t win a showdown with the markets, they will be forced to back down completely like Syriza in Greece.

Source: Italy Versus The Markets, A Very Predictable Outcome | Seeking Alpha