Italian bond yields rose to their highest levels since January as capital markets investors continued to express worry that more EU nations have set austerity plans which will not work to close budget deficits. The victim earlier in the week was Spain.
And, the Portugal stock market fell 2% today. There are very few reasons to believe that the ability of the three nations to raise capital will not continue to be under siege.
Even with a new $1 trillion set of bailout funds about to be set in place, global capital markets investors clearly believe that the failures of Spain, Portugal, and perhaps Italy cannot be sustained by the financial foundations of the EU