France's Debt Crisis Is No Longer The Story... Contagion Is
Will it spread?
French yields are marching towards the magical 5% level, sovereign spreads continue to blow out, and European banks are suddenly looking vulnerable. Yet contagion across the eurozone remains surprisingly contained. The real risk may be hiding outside the banking system, while France's stretched public and private balance sheets leave little room for maneuver. The euro is trying to stabilize, but the French mess is far from over.