Thursday, June 3, 2010

Buenos Días Amigo

It appears that Spain is the next crisis.  Are we ready amigos?

"Now, the tide has shifted. Keep an eye on the EU. As Greece, Spain, and others continue to feel 'the pain', their partners in the EU will continue to ask 'why are we being dragged down by them?'"
Random Roving, March 30, 2010

"Spain's Socialist government is seeing its political power erode as it struggles to chart a path out of deep financial trouble, failing so far to satisfy conflicting demands to cut its budget and stimulate job creation.  The coming months could bring far more problems as Prime Minister Jose Luis Rodriguez Zapatero reforms the country's labor market, risking national strikes and the loss of support from trade unions, a core source of his center-left party's strength.  Zapatero's minority government is already running into serious trouble, although there appears to be no immediate threat of it falling.  A package of austerity measures passed by only one vote in parliament's lower chamber Thursday and the Fitch Ratings agency downgraded Spanish debt on Friday. Opposition parties have called for new elections."
Source: Associated Press

"The focus of Europe’s problem is rapidly shifting from Greece to Spain, one of the world’s largest economies.”
Source: The New York Times

"Concern about Spain's medium-term growth prospects was the main factor behind a decision to downgrade the rating of the country's sovereign debt, Brian Coulton, Fitch Rating's head of Europe, Middle East and Africa ratings said on Tuesday."
Source: iMarket News

Keep an eye on the P.I.I.G.S. (Portugal, Ireland, Italy, Greece, Spain)

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