By Jon Markman, MarketWatch
http://www.blogger.com/blogger.g?blogID=3814089687891528629#editor/target=post;postID=1133294423174584018
Seattle, Wash. (MarketWatch) — You can’t spell Spain without “pain,” and you can’t spell euro zone without nearly breaking down in tears as you contemplate the latest unraveling of the continent.
On some level, it is hard to make room in your mind for how badly the
financial condition of Spain has unwound in the past two months, but you
need to do that because it is as serious as Greece, but with bigger
consequences.
Don’t get tired of all the bad news. You still need to pay attention
even though policy makers are trying to cobble together another in a
series of rickety, short-term fixes this week with twine and chewing
gum. There is a controlled explosion rippling across the continent, and
just because it is summer, does not mean it’s not real.
Despite the efforts made toward the 100-billion-euro bailout of its
banking system last month, Spain has not yet evaded a banking crisis at
all. And it has not evaded its sovereign debt crisis. And its fiscal
situation is worsening because the Spanish people are freaking out about
the fourth in a series of harsh austerity measures. The regional
government system in Spain is also getting worse, with Valencia needing a
bailout now and Catalan soon to follow.
READ MORE: http://www.marketwatch.com/story/darkening-skies-over-europe-2012-08-01?link=MW_story_popular
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