Cyprus gave us the C for SICPIG. Slovenia might let us turn the acronym into a plural.
In the last few days, as a result of the hamfisted Cypriot bailout/in/whatever, the Adriatic country has seen its borrowing costs soar to unsustainable levels. See the graph below, the 10Ys are up by 250 basis points and are now - being just below those of bailed out Portugal - at an unsustainable level.
There's no doubt that the Cypriot bailout is a game changer. I expected the next big mini-crisis would be brought about by an Italian downgrade as a result of that country being paralysed by the inability to form a government. I didn't expect it to be caused by the head honchos in Frankfurt and Brussels.
See the killer line at the end of the Guardian article?
Sources:After Slovenia, who's next? The research house Capital Economics has its money on Malta and Luxembourg.
1. When Is A "Unique Template" Bailout Not A Bailout? When It's In Slovenia | Zero Hedge
2. Slovenia could be next candidate for eurozone bailout | World news | guardian.co.uk
3. Investors afraid Slovenia will be next for bailout - CBS News
4. Heavy-handed Cyprus bailout puts pressure on Slovenia | EurActiv
5. Slovenia Government Bonds | Slovenia Government Bonds Yields