Dr Doom redux.

Lo and behold the very next day Italian debt goes above 7%. What I'd like to know is, when does Italy next have to go to the markets? To be clear, the 7% is the figure at which existing debt is changing hands, and whilst that doesn't affect Italy directly, it does give an indication of the price the country will have to stump up next time it wants to roll over some of its old stock. In Britain these things are handled by the Debt Management Office; whatever its Italian equivalent, I wouldn't mind having a look in their diary. That will be an interesting day.

Megan Greene, colleague of Dr Doom, Nouriel Roubini, was kind enough to email a response to yesterday's post. Basically we agree. She thinks that either the ECB will have to step in, or alternatively create fiscal union, double quick. But that's if the object is to save the Euro; she writes, "I don't think that should be the end goal". I don't think that can be the end goal.

In reply to Ms Greene I offered to give Dr Doom a few tips, just in case he feels his sooth-saying has lost its edge.

PS According to the Torygraph the next Italian bond auction is tomorrow. Oh dear.