Zero Hedge posted an article about the increasing dangers the Spanish economy presents to the Eurozone and the world economy in general. Here are the five major points they present in the article:
1. Spain´s national debt is 50% greater than the headline numbers
2. Spain´s housing prices will fall by an additional 35%
3. Spain has "zombie" banks with massive loans to developers and homeowners
4. Spain´s economy has not stabilized and will continue to deteriorate
5. The EU will not have the firepower or political will to bail out Spain
They go into more detail on each point, but it´s plain to see that this is much different than the rosey situation that the mainstream media paints, trying to make us believe that the world economy is recovering and everything will be peachy. In fact it´s far from the truth. The Greek bailout will be one of many, and need to be repeated with Italy and Spain, US debt is at fifteen trillion dollars (with talk of further quantative easing in the near future), and Japanese debt is at 200% of GDP.
The markets are incredibly volatile right now, and at the mercy of the media, who can initiate market drops or rises by reporting rumors at will. I´ve sold off my long term securities simply because it´s smarter to play the dips right now, rather than holding them for an uncertain future. And when the crash comes I´m going to have my finger poised over that "short sell" button.
1. Spain´s national debt is 50% greater than the headline numbers
2. Spain´s housing prices will fall by an additional 35%
3. Spain has "zombie" banks with massive loans to developers and homeowners
4. Spain´s economy has not stabilized and will continue to deteriorate
5. The EU will not have the firepower or political will to bail out Spain
They go into more detail on each point, but it´s plain to see that this is much different than the rosey situation that the mainstream media paints, trying to make us believe that the world economy is recovering and everything will be peachy. In fact it´s far from the truth. The Greek bailout will be one of many, and need to be repeated with Italy and Spain, US debt is at fifteen trillion dollars (with talk of further quantative easing in the near future), and Japanese debt is at 200% of GDP.
The markets are incredibly volatile right now, and at the mercy of the media, who can initiate market drops or rises by reporting rumors at will. I´ve sold off my long term securities simply because it´s smarter to play the dips right now, rather than holding them for an uncertain future. And when the crash comes I´m going to have my finger poised over that "short sell" button.
No comments:
Post a Comment