The long running eurozone crisis turned a corner last night, and the news isn’t good.
The list of basket cases has grown by two: Spain and Italy can no longer raise money in the bond markets at sustainable rates. The Spanish government has given up its attempt to serve out its term and has called early elections for the fall; Italy’s finance minister flew to Luxembourg for emergency consultations as Italian financial markets stagger on the edge of collapse.
If Spain spirals into a Greek-style meltdown, European banks face a crisis. If Italy melts down, European governments face one.
Until yesterday, an Italian crisis was a possibility. Today it is a fact.
Fasten your seat belts.