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Up Next in the Bailout Line: Italy?

So.  Spain got a bailout (and continues to negotiating their banking bailout).

And, Greece got repeated bailouts. (I still consider Greece’s non-timely payments of less than the amount owed to be a default — and I expect them, to leave the euro zone before 2013 is over).

Who is next in the banking handout parade?

Why its Italy!

Italy’s banks don’t have as much debt relative to some other nations (Spain) but their government does relative to GDP. Bravissimo!

Ciao, Italia!

 

click for larger graphic
Will Italy be the next in line for a bailout?

 

Source:
As world economic growth ebbs, talk of new stimulus surges
Howard Schneider
Washington Post, June 12, 2012

http://www.washingtonpost.com/business/economy/as-world-economic-growth-ebbs-talk-of-new-stimulus-surges/2012/06/12/gJQAMSX5XV_story.html

This post originally appeared at The Big Picture and is posted with permission.

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Thomas Grennes is a professor of economics at the North Carolina State University and a former visiting faculty member at the Stockholm School of Economics in Riga. His research has dealt with various aspects of international economics, including open economy macroeconomics, international finance, and international trade in agricultural products. Recent research topics have included macroeconomic aspects of the Great Moderation, offshore outsourcing, sovereign wealth funds, and the relationship between government debt and economic growth. Earlier work dealt with emerging market issues in the Baltic countries and Russia and trade and macro policies in Sub-Saharan Africa. Economic history topics include the Columbian Exchange of plants and animals, the effects on food markets of introducing mechanical refrigeration, and the integration of Tsarist Russia into the world grain market. When he is not involved in economics, he enjoys mountain hiking.

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