After all, it has been made clear to them that the Fed and Treasury stand ready to bail out banks bad assets at any cost.
FORBES: Fed's Next Move Will Be To Ease Interest Rates
2.
But perhaps more worrying is that Italy's huge banks are likely to find it harder and more expensive to borrow - because banks are perceived to be only as safe or as risky as the governments that stand behind them to bail them out in a crisis.
BBC: Italy's banks face squeeze
3.
The implication is that the European Central Bank should stand behind Spanish government bonds in order to prevent a bail-out, and that Mrs Merkel should publicly back Spain.