Italy will be the Euro's Last Stand!

Eurozone Creditors Storm the Walls of Rome!

At least according to two guys at The Financial Times. Edward Altman and Maurizio Esentato, a professor and a CEO, have analysed data from the Eurozone and have concluded that Italy will represent the last battleground to preserve the Euro.

Thus, we turn to Italy. The country has far more sovereign debt outstanding, almost $2,000bn, than any of the other problematic governments. While ultimately the euro’s survival will come down to political realities we feel the euro’s financial market “battle” will come down to the plight of Italy. Its debt, if added to the mounting EU and IMF’s responsibility, may simply be too much and the euro will then crumble.

[O]ur overall credit risk metric, while better than two years ago, places Italy among the riskiest private corporate sectors. If the European stock market, and Italy’s especially, suffers another downturn, our risk measure will surely deepen and leave Italian government debt vulnerable to the same type of market attack the other peripherals have had to endure, with the attendant increase in interest rates and credit insurance premiums.

Gird your loins! Don your armor! Man the balistas! To the walls, boys, to the walls!!!!