Just had a look at the charts of European spreads.

It was not until July that Italian bond spreads broke above the 2.00% mark over Germany in a big way.

France widened as high as 1.90% earlier this week. The second most important country in the euro zone is basically where Italy was 5 months ago. Food for thought…

It is also a call to arms, and it stands to reason that despite all the German bluster, the ECB will either become the lender of last resort to sovereigns directly or via an intermediary like the IMF or some other intermediary.

As a US taxpayer, I’d prefer to see the European Investment Bank or some other entity play the middle man…