As Predicted, Italy Now Takes the Spotlight

Perhaps even away from Portugal. Here's a chart of Italian Credit Default Swaps-

Contagion via Italy? As I said yesterday, it's a case of hopscotch or even leap frog. I doubt anyone thought Italy would come up so soon in the cycle of contagion fears, but with Libya cutting off something like half of Italy's domestic oil consumption supply, their little cars are about to be traded in for bicycles and I'd think a car for a bike in Italy right now is going to be about an even trade. Luckily the Italians make many fine bikes.

Just waiting now for the Euro to play the anvil in a Wiley Coyote Cartoon.