Skip to comments.EU: Spain back in the dangerzone as politicians wrangle [one week after latest bailout]
Posted on 07/07/2012 12:56:54 AM PDT by bruinbirdman
Spanish and Italian borrowing costs soared back into the danger zone as traders bet that the policy action by central banks was inadequate defence against the continued political and financial chaos in the eurozone.
The yield on Spains benchmark 10-year bond rose above the 7pc bail-out level amid fears that opposition in Germany and Finland could crush the rescue plans agreed in Brussels last week.
The Finnish finance minister, Jutta Urpilainen, said her country was not prepared to keep the euro at any cost. She said the euro was use for Finland, one of the eurozones last remaining AAA-rated countries, but added: Collective responsibility for other countries debt, economics and risks; this is not what we should be prepared for. We are constructive and want to solve the crisis, but not on any terms.
European stockmarkets fell sharply, the euro dropped to its lowest level for three and a half years against the pound, and the yield on Italian 10-year bonds rose to 6.25pc, despite the move by the European Central Bank, the Bank of England, and the Bank of China to pump liquidity into their economies.
On Friday a frustrated Joerg Asmussen, an ECB board member, said too much was being expected of the Bank. We must explain what the limits of our powers and mandate are, he said in a speech. The ECB cannot compensate for what others - notably political authorities - fail to do. He added: There is no substitute for good policies.
In Brussels there were promises of more solutions at the Eurogroup meeting on Monday. One official told reporters that the 17 finance ministers intended to reach a political decision on how to support Spain.
In Cyprus, the finance minister blamed Greece for the island being forced to appeal to Russia, Brussels and
(Excerpt) Read more at telegraph.co.uk ...
The people on Fox Business warned this when they did and the stupid markets beleive that they fixed the problem
Suppose Greece or Spain picked an industry to get in. Create some much needed jobs. Pretend they could it well. What happens? Whomever they compete with will lose jobs. Just transfer the problem. Not enough demand in the world. Thats the issue. All that might happen is unemployment shifts from nation to nation.
You can’t fix Free Trade Globalism with Socialism....as the EU, rest of the world is learning
Now, will our leaders here pay attention?
I can’t believe any significant player in the markets really believed they fixed the problem. More like a pump and dump opportunity. I have as much confidence in the stock market today as I would walking into a casino run by Cosa Nostra. The whole thing is rigged and the result is what you would expect in an economy that is not free market capitalism.
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