Bond yields are soaring. Stock markets are tanking. The banks are looking wobbly, and money is starting to drain out of Italy. To listen to the mainstream commentary on the Italian crisis part 782, you’d imagine that a wild and irresponsible ‘populist’ government had just been tamed by the financial markets. And that once some sensible suits backed by the IMF and the EU take back control in Rome order would be restored and everything will be back to normal.
The trouble is, that is not quite the whole story. In fact, the markets have already worked out that Italy […]
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