Europe tanks


The welfare and entitlement system that is Western Europe is reaching its zenith.

AUSTRALIAN shares have plunged more than 3 per cent lower today as the never-ending eurozone crisis has entered dangerous new territory.

Italy, the eighth largest economy in the world is in debt of $2.2tn. Overnight, rates on Italian bonds rose past 7 per cent. When Ireland, Greece and Portugal hit this 7 per cent mark – they needed to be bailed out. But Italy is “too big to bail” and the possible contagion effect from a failure of Italy is causing global markets to fall.

Other news spooking markets is that French and German officials are exploring the idea of a smaller eurozone, sparking fears that this could be the start of a eurozone breakup.

14.00 It’s definitely not just the Australian sharemarket that’s being walloped today. Around the region Hong Kong stocks have slumped 4.28 per cent, Japanese shares have dropped 2.64 per cent.

What a mess. Wrap your head around this doozy.

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