Italy has always been the poster child for excess government debt. Their deficit for next year is projected to be not so bad, given the global economic backdrop, at around 5% of GDP (the US will be closer to 13%) but their accumulated debt will exceed a years-worth of GDP by 18%, according to an Italian source. To put things in perspective, to enter the euro, a country is supposed to keep its debt/GDP ration below 60%.
In the markets, US shares have recouped their losses and now trade mildly positive on the day. EUR/USD is off session lows, now at 1.3965…
