BBC News – What’s the matter with Spain?

Upwards

Whoever wins Spain’s general election on Sunday – and it looks likely to be the opposition conservatives – will face a potentially unsolvable economic dilemma.

They may also face a major financial crisis.

Because, with Italy having now joined Greece, Portugal and the Irish Republic on the eurozone critical list, it is looking like Spain will be next.

The government’s cost of borrowing money on the financial markets for 10 years – a popular barometer of lender fear – has risen to 6.3%.

That’s close to the level where other eurozone governments turned to their neighbours for a bailout.

In comparison, Germany only has to pay an interest rate of 1.8%.

However, Spain’s descent into the financial abyss is important for more than the fact that it is – like Italy – an enormous economy that may be too big to rescue.

It is because Spain does not fit the narrative.

via BBC News – What’s the matter with Spain?.

Strange Random Spain Quote:

“If you’d be wealthy, think of saving, more than of getting: The Indies have not made Spain rich, because her Outgoes equal her Incomes.” – Benjamin Franklin

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Posted on November 16, 2011, in Article and tagged , , , , , , , , . Bookmark the permalink. 1 Comment.

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