1. The Greek government has replaced all the heads of their military branches with officers considered more friendly to the regime.
Wow! Given Greece's history, that is a stunner. The left fears a coup? This might get even uglier that I had imagined.
2. Italian bond yields are up to 6.4% and Berlusconi is coming to the G-20 Summit empty handed.
Italy's public debt is on the cusp of explosive dynamics, where the higher interest rate on new debt combined with a low economic growth rate causes the debt to GDP ratio to continually rise even if the Italian budget is in primary balance (spending net of interest payments = revenues).
People, the Euro as we know it is over. I say it's a coin flip to last until Christmas and maybe 15% to last until spring break.
Germany and France are asking Greece, "do you want to stay in or not?" and Greece is saying "what, are you guys deaf?".
I am not sure what Germany and France are up to. If Greece goes, Italy definitely goes and that's game, set & match.
If they want to keep the Euro together they need to take on Greek debt as their own and settle in for a long hard slog dealing with Italy.