After the young and innovative Spain (OLE) , after the Celtic Tiger 's Ireland are prepared to give us a mouthful of Belgium! Yes because like it or not (and blogger catastrophic Italiot average from a nuisance crazy), this Italy of Bunga Bunga is rising slowly from the bottom of the rankings of European countries reliable. Portugal and Greece all in all we have always kept at bay (even with the government Visco ...) Then came the crisis and found that on balance we are better than the "mythical" Spain "and much better than the Celtic Tiger Ireland. But today we are ready for a new overtaking: In this nice chart you can see the comparative performance of the spreads between the German government bond with the Italians (in Green) and Belgium (orange), the zero point spreads were:
Belgium / Germany: 61.5 bps
Italy v Germany: 122.2 bps
So Belgium was paying a premium on German securities of about 61bps lower than ours, we are now in
Belgium / Germany: 111bps
Italy v Germany: 158bps
So Belgium was paying a premium on German securities of about 47bps lower than ours, we have recovered 14bps-
There seems little? Perhaps
but the trend lately is to further rapprochement deggli spread. You decide if it is on Italy, or default of Belgium, reluctantly I tend more towards the second version since almost a year in Belgium is that there is no government and Flemish and Walloons really seem to want to separate in a traumatic way. As far as Italy is concerned, perhaps it could be better, certainly could have gone much, much worse than this in the midst of this great crisis. Bunga Bunga apart, despite the fact that Bunga Bunga I certainly did not help him I would send a thank you to our Minister Giulio Tremonti and you?
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