Paul Krugman on the End of the Euro
There is no need to write a post on the latest developments in Italy and in the eurozone. Paul Krugman says better than I could, how close we are to Armageddon.
There is only one very minor point of dissent, that for once makes me less pessimist than he is. I give more importance to the Italian internal factors than he does. If a solution is found to the current political turmoil, there may be a truce in the speculative attacks, and the spreads may go down to more manageable levels.
It remains true that without a rapid u-turn of the ECB, speculation will not be defused.