Spains borrowing costs hit 7%

Thrugelmir

Mrs_Bones wrote: »

but it's slowly dawned on them that nothing can be sorted for about a year.

Markets are fully aware. On the surface not much may be happening. Underneath there's an exiting from markets as finance institutions continue retrench to home terroritory.

Thrugelmir

kebab77 wrote: »

Feels like this won't be solved until the ECB is allowed to print Euros ... which won't happen until the Eurozone starts dragging Germany down with it. When the German people start panicking, suddenly all the stuff they are saying 'nein' to will become acceptable.

Printing Euro's doesn't solve the problem.

sabretoothtigger

It divides it into smaller pieces making it easier to swallow, yummy

They do print euros, just now its supposed to be in proportion to actual assets not just every time need to pay a new bill.
If Germany was smart they'd just leave now and take the hit but my guess is they will keep bailing out but with a new word to describe an idea for lowering older currency value and the cost of old debts.

The FED financed ECB by giving them a currency swap made from newly printed dollars. Maybe they will out source
http://mises.org/daily/6002/The-Feds-Swap-Bailout-of-the-Eurozone