May
30

Insane Spain

The Spanish banking system is crumbling. While 10-year Treasuries yield 1.62%, Spain’s 10—year bonds yield 6.61%, near the all-time of 6.78% set 11/25/11. If yields stay this high, Spain will need a bail-out. Problem is, as the world’s 13th largest economy, with a $1.4 trillion GDP, it’s too big to bail out. Yet, things will continue to deteriorate as the deepening real estate bust will weaken investor confidence further.

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