EURO 2011: JUST AS BAD AS EURO 2010

NYTIMES:

Europe’s sovereign debt crisis is back — if it ever went away.

Less than a month after bailing out Ireland, and following a holiday lull in the markets that may have looked mistakenly like calming, the European Union is again struggling to persuade investors that it has the cash and will to address the root cause of the euro zone’s travails: a growing debt overhang that is strangling governments and their banks.

On Friday, the yield on Portuguese 10-year sovereign bonds hit a recent high of 7.1 percent, the cost of insuring the debt of banks in Italy and Spain rose sharply, and the euro hit a three-month low against the dollar.

THE EURO WILL COLLAPSE THIS YEAR.

GOOD RIDDANCE.