Italy's Political Crisis Summarized

• Euro cut to an 11-month low
• 3rd largest economy in Europe
• Italian bond yields, a sensitive gauge at political risk, soared as much as 80 basis points
  • When bond yields rise, finance costs are going to go up
• Dramatic selloff in Italian bonds
• Fears of an Italian debt crisis 
• Two Populist parties failed to form a government that can pass constitutional muster
  • Populism: support for the concerns of ordinary people
• Italy's overall economy is 10% smaller than it was a decade ago
• Unemployment is at 11% because of Italy's inability to devalue its own currency or use significant deficit spending to boost demand 
• Rumors of Italy wanting to leave the European Union
• Italy's debts are 131% of GDP
• Poor economic performance
• Too big to bail out and also too big to collapse