Spain, Greece and the Horror with No End…For Now
Although markets were calm today from the US Memorial Holiday, Spain today asked the EU to act in providing support for fiscally frail gov’ts (read ‘Spain is begging for help’) as its fiscal gaps and banking system (but, but…Bankia is fully solvent you said) are getting pummeled with soaring yields which are punishing the rates on bonds. Again, Spain is 4x larger than Greece so if Spain goes, you have just seen the titanic hit the iceberg.
Meanwhile further in the Mediterranean, Greece seems to be playing chicken with Germany on wanting bailouts, but not meeting the conditions. Both parties are discussing the bailout but one is pro-bailout and the other …... Keep reading