Prior to the release of the Fed's interest rate increase, the EUR was trading lower versus the Dollar. Further bad news was released yesterday in the Euro-Zone economy. A warning from Italy's Audit Court signaled that derivative contracts used by Italian municipal governments could multiply their debts over time.

This report comes at a time when the European Union is already facing headwinds due to the fiscal crisis in Greece. The report has garnered more attention due to swap contracts used by Greece which may hide future monetary obligations from their reported financial statements.

It appears that one bad story after another is coming from the EU. If it is not Greece one day then it is Portugal. If today it is Spain, then it will be Ireland tomorrow. This group of nations has come to be known under the abbreviation as PIGS. The countries appear to be the hardest hit from the global recession and the most fiscally troubled. Now Italy may also be added to this prestigious group. What will we call them now; PGS II?