Spain.. A moment of clarity on my part

Conrad

Mistral001 wrote: »

The breakup of the Euro Zone and how it will affect us. Now that's another matter. Are we ready for it?

Thinking outside the box often proves wise. Everyone told me of dire consequences for y2k for example, and now't happened.

So being a natural contrarian, I find myself thinking maybe it won't be as bad as we keep hearing, maybe there could even be upside?

Just musing is all.

JohnRo

missile wrote: »

The frightening thing is, it seems those in the Euro Zone have no control either.

Implying that the UK does?

Currently we are in the longest (technically double dip but essentially a continuation) and as near as damn it, the deepest, recession on record.

So far the only solution the BoE crooks have managed to conjure is to flood the UK with 325bn counterfeit pounds and rob pensioners and savers to help prop up the banks and their bonuses as an attempt to deflate debt levels and the profligate housing bubble.

Graham_Devon

Spanish bonds have now reached the highest rate since the Euro started, at 6.81%.

7% is considered unsustainable.

However, the markets appear to have shrugged it all off.

The reason for the increase in costs is investors believe the lastest £82bn has only added to a debt problem, and done nothing to aid growth.

CLAPTON

Graham_Devon wrote: »

Spanish bonds have now reached the highest rate since the Euro started, at 6.81%.

7% is considered unsustainable.

However, the markets appear to have shrugged it all off.

The reason for the increase in costs is investors believe the lastest £82bn has only added to a debt problem, and done nothing to aid growth.

It seems a little strange to me that 6.81% is ok but 7% is 'unsustainable' but then I've long since felt that 'unsustainable' like 'affordable' has ceased to mean anything atall.

sabretoothtigger

7% is normal. This is all silly town central

What they mean is we may have to stop the deficit, heck we may even have to pay some of these debts back. Thats the unsustainable part, the over spending

Imagine Spain does pay 7% and they had a reasonable budget and times were tough but if they paid out that much on government bonds it puts pressure on the rest of Europe, why am I lending to Germany for 0%

I can remember walking down the highstreet and every bank was offering 10% on your savings, it wasnt before the great war it was the nineties.
High rates are totally normal, whats abnormal is all this shenanigans going on now and the music will stop sometime and some politicians will be left without a seat

UPDATE: Italy 'Will Not Need a Bailout,' Says Monti
(Adds quotes)

ROME (AFP)--Italy won't need a bailout to survive the economic debt crisis, Premier Mario Monti said in an interview with the German Public Radio ARD on Tuesday, amid fears Rome might be forced to call for aid.

"Italy even in the future will not need aid from the European Financial Stability Fund," Monti told ARD according to Italian media reports.

The former European Union commissioner, who has been working hard to deny rumors that Rome is at risk of contagion, called on the markets and financial observers "not to be governed by cliches or prejudices."

"I understand that Italy could have been associated with the idea of an undisciplined country in the past" but "now it is more disciplined than many other European countries," he said.

"Our country pays through its financial contribution...to support Greece, Portugal, Ireland and now Spain. And now it also pays through extremely high interest rates because of tensions on the markets," he added.

Rome is struggling to allay market fears that it might be next in the debt-crisis firing line in the wake of a bailout for Spain this weekend and ahead of a Greek election Sunday that could force Athens out of the euro zone.

(END) Dow Jones Newswires

June 12, 2012 15:41 ET (19:41 GMT)

maybe there could even be upside

The breakup of Europe is no such thing. They'd still trade with each other every day most likely, what it probably means is less government and less 'free' stuff.
ie. there is a ton of possible upside, its a very hidden factor apparently