QUOTE: Europe's already crippling debt crisis is set to worsen in 2012, when many of the region's governments are forced to refinance huge amounts of debt. According to Ilian Mihov, a professor of Economics at the INSEAD business school, Italy alone will have to roll over 400 billion euros ($538 billion) in 2012, about 20 percent of its total debt. With yields on bonds at 7 to 8 percent, that could be difficult, he added.
It was interesting to see stocks sail ever higher yesterday, which is definitely a good thing in the short term. However, with such an 'exaggerated' rise comes the potential for an even deeper drop later so I think it behooves everyone to be a bit cautious about these wild swings up and down. I'm hoping for a strong economic recovery, but keeping an eye on the long-term trends such as the still excessively-high unemployment figures.