A spike in Italian debt yields sent global markets tumbling Wednesday, with the Dow down more-than 370 points in recent trading.
Earlier this week, you may recall, talk on the Street was that if Silvio Berlusconi would only step down, the Italians would be free to adopt austerity measures and market pressures would relent. Instead, Berlusconi's pledge to resign seem to intensify market fears about Italy's huge debt load.
Yields on Italian 10-year debt jumped to 7.4%, a record for the euro era and a level at which other EU members, notably Ireland, Portugal and Greece have required bailouts.
From Berlin, German Chancellor Angela Merkel once again reaffirmed her commitment to the grand EU experiment, declaring: "It is time for a breakthrough to a new Europe. Because the world is changing so much we must be prepared to answer the challenges. That will mean more Europe, not less."
As Jeff Macke and I discuss in the accompanying video, less Europe might actually be more and "more Europe"Read More »from “There Is No Solution for Europe”: Stocks Tumble as Italian Yields Surge