Europe’s ‘Call Me Maybe’ Approach to Financial Crisis Management | Daniel Gross - Yahoo! Finance ;..
Let's review. America's financial panic ended in the spring of 2009. But Europe has been seized by a series of rolling banking and fiscal crises. So far, three constituent members of the euro zone have officially cried uncle and asked for bailouts — Ireland, Greece and Portugal. A fourth — tiny Cyprus, whose banks are heavily exposed to Greece and has been relying on direct loans from China and Russia — is poised to ask for help.
And Then There's Spain
And then there's Spain. Spain sports an unemployment rate of 25 percent and a shrinking economy. Large banks that passed stress tests less than a year ago are now revealed to be functionally insolvent. Bond investors are demanding interest near six percent to borrow for 10 years.
Let's review. America's financial panic ended in the spring of 2009. But Europe has been seized by a series of rolling banking and fiscal crises. So far, three constituent members of the euro zone have officially cried uncle and asked for bailouts — Ireland, Greece and Portugal. A fourth — tiny Cyprus, whose banks are heavily exposed to Greece and has been relying on direct loans from China and Russia — is poised to ask for help.
ReplyDeleteAnd Then There's Spain
And then there's Spain. Spain sports an unemployment rate of 25 percent and a shrinking economy. Large banks that passed stress tests less than a year ago are now revealed to be functionally insolvent. Bond investors are demanding interest near six percent to borrow for 10 years.