Europe in trouble

The Greece 2 year bond yield is 31.11%.
The Portugal 2 year bond yield is 18.25%.
The Irish 2 year bond yield is 17.77%.
Meanwhile, the German 2 year yield is 1.26%.

The Spain 10 year bond yield is 6.03%.
The Italy 10 year bond yield is 5.68%.
The Belgium 10 year bond yield is 4.29%.
Meanwhile, the German 10 year bond yield is 2.67%.

The Euro dropped 2.1% today against the Japanese Yen, 1.7% against the Swiss Franc, and 1.5% against the US Dollar. The price of gold in Euros went up 1.9% in one day, to 1103.09.

The Belgium stock market dropped 2.61% today. The Portuguese market dropped 4.3%, Spain dropped 2.69%, Italy dropped 3.96%, Greece dropped 2.57%, and Ireland dropped 1.47%. Even Germany dropped 2.3%.

So what now? Maybe the markets will recover tomorrow. Or is this the start of something really bad?

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Update: Italy needs 630 bn euros over the next 3 years to finance its budget deficits and to rollover expiring debt, Spain needs 380 bn euros, and tiny Belgium needs 150 bn.

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The original post was July 11. This update is as of July 14. The Irish 2 year bonds now yield 20.87%. The Greek bonds improved slightly to 30.35%. Gold is now at 1119 euros.