The media jumps around to new topics. My guess is we'll see a new drop once people realize the fundamentals remain as bad.
The fundamentals remain bad in Spain and Greece, however Ireland and Italy have definitely improved. On September 28, there was this report in RTE News mentioning that Irish house prices have increased in May, July and August. Prior to May, there had not been a monthly increase in 5 years. This is significant as it contains losses in the Irish banking system, and since Ireland's trade balance is already sufficient, the bottoming of the real estate market stabilizes the country.
Even more significantly, I read today that Italy ran a trade surplus for the first six months of 2012. I don't know if this is a seasonal thing with Italy, but in any case the Italian balance of trade seems much better this year than last; and that might help account for why its credit risk has fallen so much. Last year I was apocalyptic, thinking that getting rid of Berlusconi would not solve anything, but now it appears as if that might have done the trick after all (along with some actions by the ECB of course).
Portugal, I do not know much about. As I mentioned above the markets appear to be giving the country confidence.
Guess I was right then
Anyway,yesterday (or the day before,don't remember) both Spain and Italy's auctions went perfectly,with record-low rates.
