Could Italy Be the Next European Domino?: Simon Johnson
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July 5 (Bloomberg) -- In recent days, Greece’s parliamentadopted new austerity measures and Europe’s finance ministersapproved another round of Greek loans. So the European debtcrisis is under control, right?
Probably not. One obvious reason is the dual warning byratings firms to banks agreeing to roll over Greek governmentbonds into new instruments. Standard & Poor’s July 4 threat todeclare a default, and today’s suggestion by Moody’s InvestorsService that banks may have to take an impairment charge, couldforce everyone back to the drawing board.