'Spanish economy in "huge crisis" after credit downgrade'

Discussion in 'Economics' started by Wallace, Apr 27, 2012.

  1. by Nigel Davies MADRID | Fri Apr 27, 2012 1:08pm BST

    "(Reuters) - Spain's sickly economy faces a "crisis of huge proportions", a minister
    said on Friday, as unemployment hit its highest level in almost two decades and
    Standard and Poor's weighed in with a two-notch downgrade of the government's
    debt.
    Unemployment shot up to 24% in the first quarter, one of the worst jobless figures in
    the developed world. Retail sales slumped for the twenty-first consecutive month as
    a recession cuts into consumer spending.

    S&P now has Spain on a BBB+ rating, which means "adequate payment capacity"
    and is only a few notches above a junk rating. Fitch and Moody's still rate Spain's
    sovereign with a "strong payment capacity"."
    http://uk.reuters.com/article/2012/...me=GCA-GoogleNewsUK&google_editors_picks=true
     
  2. 50% of the young are unemployed.
     
  3. pupu

    pupu

    Not only in Spain but globally

    This is what happens when you go to long between culling

    Been a while since we had a good global world war
     
  4. ya eventually all these boomers will be forced into retirement and we can pass the jobs to the youth.. they will not like them and start and want more $$ anyway..
     
  5. How off are our gov't unemployment #'s compared to reality? In the USA
     
  6. US equity markets going up every single day. No one cares about spain. Nuke it into the sky and we will probably be up 500 pts.:D
     
  7. If Spain gets in trouble with their July funding, the Stability Mechanism will pick it up. I think Italy is the big problem.
     
  8. I have said for a long time that the Euro will keep going to 2014 that is when the big maturities hit.
     
  9. AK100

    AK100

    Greece was highly relevant towards the US, so is Spain.

    Not in the short term, ie now but Greece moves to Spain which leads to Portugal which leads to Italy (or the other way around) just like a set of dominos.

    Then it's not Greece, Spain or Portugal it's EUROPE and that leads to the US. Plus don't forget Japan, they can't last for much longer. Throw in China as the wild card (maybe Europe's problems sets China off).

    It's all about debt folks and that can be hidden and forgotton about in the short term but then the problem just gets bigger....

    Timing is of course everything and as for US stocks, who knows, but if there are to be good shorts it's not yet. Better to short at lower levels with some sort of confirmation that the top is in.
     
  10. Nothing matters anymore as long as central banks promise to keep the spigots open.
     
    #10     Apr 27, 2012