{"id":34891,"date":"2018-06-08T05:59:24","date_gmt":"2018-06-08T10:59:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34891"},"modified":"2018-06-08T05:59:24","modified_gmt":"2018-06-08T10:59:24","slug":"return-of-the-euro-crisis-italy-quakes-rest-of-the-world-shakes-and-merkels-empire-breaks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34891","title":{"rendered":"Return of the Euro Crisis: Italy Quakes, Rest of the World Shakes and Merkel\u2019s Empire Breaks"},"content":{"rendered":"

Return of the Euro Crisis: Italy Quakes, Rest of the World Shakes and Merkel\u2019s Empire Breaks<\/a><\/h3>\n
\"AngelaEurope\u2019s many fault lines are spreading once again, bringing the endless\u00a0euro crisis<\/a>\u00a0saga back in 3-D realism. Italy gained a new anti-establishment government last week, even as Spain elected a new Socialista<\/em> government that could crack Catalonia off from the rest of Spain. All of Europe fell under Trumpian trade-war sanctions and threatened their own retaliation. And Germany\u2019s most titanic bank got downgraded to the bottom of the junk-bond B-bin.<\/p>\n

The Italian shakeup caused US bond prices to soar (yields to drop) in a flight of capital from European bonds, yet US stock investors took this invasion of troubles from foreign shores as good enough news to end the week on a positive note. The NASDAQ especially never looked happier, though financials feared contagion. As a result, the contrast between tech stocks and financials burst upward to its highest peak since the top of the dot-com frenzy:<\/p>\n

\"S&P<\/p>\n

While Europe\u2019s troubles apparently sounded like great news to US stock investors, the\u00a0Italian crisis caused EU bank stocks in aggregate to take one of their largest avalanches in history, ending in a one-week cliffhanger at their lowest level in two-and-a-half years. Deutsche Bank<\/a>, Germany\u2019s titan of global finance, ended looking like the spawn twin of the Lehman Brothers:<\/p>\n

\"Deutsche<\/p>\n

Deutsche Bank appears to be leading the way into a full blown euro crisis like Lehman Bros did in the US financial crisis.<\/p>\n<\/div>\n

In one week, Europe with its impossible euromess moved back into position of being the world\u2019s chief menace. The Eurozone is a house of cards with many exits<\/a>, each with their own name, as I\u2019ve written about frequently<\/a> in the past, and it\u2019s time to pay the never-ending euro crisis some attention once again.<\/p>\n

Quitaly looks like next Brexit<\/a> in everlasting euro crisis<\/strong><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Return of the Euro Crisis: Italy Quakes, Rest of the World Shakes and Merkel\u2019s Empire Breaks Europe\u2019s many fault lines are spreading once again, bringing the endless\u00a0euro crisis\u00a0saga back in 3-D realism. Italy gained a new anti-establishment government last week, even as Spain elected a new Socialista government that could crack Catalonia off from the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[109,117,11574,12455,281,359,11687,1464,743,3222,827],"class_list":["post-34891","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capital","tag-catalonia","tag-david-haggith","tag-euro-crisis","tag-europe","tag-germany","tag-great-recession-blog","tag-italy","tag-spain","tag-trade-war","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34891"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34891\/revisions"}],"predecessor-version":[{"id":34892,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34891\/revisions\/34892"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}