What's interesting about the Spain Bailout? The Bail out is simply a loan. A loan that increases Spain's GDP to debt ration by 10%. Yes, 10%. Why is that a bad thing for Spain? The underlying problems that created the problems weren't and won't be addressed. It's really that simply.
Several weeks ago we talked about Spanish "Cajas". There's been no attempt at reigning them in. This is simply a loan that Spain may bail on. Just like Greece will do. Why will they bail? It will be impossible for them to pay back.
This is also... the 4th Euro member to receive a bailout. That really seems to be remiss in the main stream media and the markets. The fundamental issues surrounding the problems in the euro zone are not being addressed.
Please don't get me wrong, I'm not entirely gloom and doom. I do believe the euro will not entirely disappear. what will reemerge from this crisis will be a dramatically different currency with different memberships. How long it will take is the question. Remember, Greenspan kept telling us that there will be no housing bubble, the recession is over, and... and... that was all in 2005-8. Seems to me it's now...The Year of our Lord 2012.
Finland - Is just about the only smart ones over there....
Some stuff you won't hear about. China Auto Glut.
China has decided that it's a great idea to Build 70 new Airports by 2015.
We've got Iran destroying buildings to hide nuclear testing. The UN is going to write a sternly worded letter. I'm sure that will work.
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