Spanish Government 10 yr. Bond
Italian Government 10 yr. Bond
Watch these two yields on Bloomberg. If they blow out, you can expect stocks to come down, the dollar to rise, oil goes down, and financial contagion spreads. It’s as simple as that. Why Spain and Italy matter so much to the world is just another example of how global financial systems are too complexly intertwined Soros and Buffet are both right; credit default swaps should be banned. That would be one easy step for governments to do to begin to surgically repair the circulation back to the banking system.