Is the debt crisis back to Europe? – depends on who you ask…
On the one hand, everyone agrees that there is a debt that needs to be paid – but not everyone agrees that the rules apply for everyone… – in 2011 it led to a 30% drop in one of the leading indices – The Dax30.
Greece in 2011, Italy in 2018
In 2011 a country called Greece negotiated with the EU about a debt and a rescue package(read more here – https://en.wikipedia.org/wiki/European_debt_crisis) – and pushed the entire market towards turbulence that some believe is not over yet…- now throw a “small” country like Italy into the mix and what do you get? (some facts about the crisis and the numbers behind it – https://www.theguardian.com/news/datablog/2011/nov/07/euro-debt-crisis-data)
This is how the Dax30 responded back in 2011 what the debt crisis erupted:
The story is very simple:
Italy as of now has a new government that is striving to cancel a debt of 293B Euro… back then the market did not like it – do you see a reason the markets will like it now?
React to this information according to your opinion.