IMF chief Christine Lagarde issued a warning in Beijing on Wednesday that Europe's debt crisis may plunge the global economy into a "lost decade" — long periods of zero or negative growth — experienced by Latin America in the 1980s and Japan in the 1990s. She spoke even as the interest rates for the 10-year Italian government bonds breached the psychologically-important 7% mark, a level at which markets believe Italy can no longer finance its $2.6 trillion debt.
Bond rates rose despite Tuesday's announcement by Silvio Berlusconi, Italy's controversial PM, that he would resign by the month-end.
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