By editor
Originally published on Thu November 10, 2011 12:54 pm
Italy crossed into bailout territory today. The interest rate on the country's 10-year bonds, which has gone through the roof in the past few weeks, rose to over 7 percent.
We've seen this story play out before in other European countries.
A country is in debt trouble. Investors demand higher interest rates to lend money to that country. Paying those higher interest rates mean the country will fall even further into debt. So interest rates go up even more.
Read more