When the ECB Ends QE, Who Is Going to Buy Italy's Worthless Debt?

Lost in the daily back and forth game of politico-economic chicken between the EU and Italy is a simple reality: The single largest buyer of Italy’s bad debt has been the ECB’s QE program, which does not demand a realistic rate of return on Italian debt. As QE ends, yields should, by all rights, soar as only profit-motivated investors are left.

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