By Andrew Butter (Guest Post)

No sooner was a “deal” (of sorts) structured for Greece than the vultures turned their attention to Italy, and the familiar double negative feedback loop started. First the cost of insuring Italy’s debt via CDS nearly doubled in a week, then the yields went up (of course), then the rating agencies started to fret about whether or not they might have missed something (again), so talk started about downgrades, so investors who are obliged to have a certain quality of debt in their portfolios started to sell, so yields went up, so CDS spreads went up…round and round. (See…

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