Economic storm this weekend?
Jul 23rd 2012, 2:48 pm
#46
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Location: Mallorca
Posts: 19,367
Re: Economic storm this weekend?
I discovered this morning that the government controlled Chemists (famarcias) have gone on indefinite strike in the Valencian region from today. Because they haven't been paid by the Valencian government, who in turn haven't got the money left to pay them. They haven't got the money to pay their civil servants, police, teachers, pensioners and unemployed people either.
It sort of brings home the reality of the situation, the government has run out of money and has to borrow at punitive rates which will only make matters worse.
Spain has had a 30 billion bail-out over the weekend and should be able to send money to Valencia to allow the Spanish people to get their life-saving medicines for another six weeks or so, until they need more money.
What a terrible state of affairs! How did it come to this? The housing bubble and incredible corruption doesn't explain it, nor the reluctance of people to pay their taxes, there must be more to it, surely?
(Thank God for the many expats pumping money into the local economy, and the tourists).
It sort of brings home the reality of the situation, the government has run out of money and has to borrow at punitive rates which will only make matters worse.
Spain has had a 30 billion bail-out over the weekend and should be able to send money to Valencia to allow the Spanish people to get their life-saving medicines for another six weeks or so, until they need more money.
What a terrible state of affairs! How did it come to this? The housing bubble and incredible corruption doesn't explain it, nor the reluctance of people to pay their taxes, there must be more to it, surely?
(Thank God for the many expats pumping money into the local economy, and the tourists).
Europe's economic suicide
Last edited by amideislas; Jul 23rd 2012 at 3:08 pm.
Jul 23rd 2012, 3:26 pm
#47
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Joined: Jul 2012
Posts: 2,041
Re: Economic storm this weekend?
Valencia's total outstanding debt at the end of 2011 was EUR20.76 billion.
Jul 23rd 2012, 3:54 pm
#48
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Joined: Mar 2012
Posts: 487
Re: Economic storm this weekend?
Portugal, Spain, Ireland and Greece take out almost twice what they put in to the EU. When they go the rest of us will be so much better off.
Jul 23rd 2012, 4:08 pm
#49
Lost in BE Cyberspace
Joined: Apr 2009
Posts: 7,749
Re: Economic storm this weekend?
From 2012-2015 Spain, Italy etc would have been sending a sizable chunk of their GDP that way
But instead now you'll have to makeup the shortfall
But that shouldnt be a problem for the UK with its minimal debt levels...oh wait....
Jul 23rd 2012, 6:14 pm
#50
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Re: Economic storm this weekend?
You obviously haven't seen developments so far this morning.
Apart from stock markets generally down, and Spanish yields soaring to record highs, the news has come in that trading in Italian bank shares have been suspended.
Maybe this is the worse that will happen today, but let's see?
Apart from stock markets generally down, and Spanish yields soaring to record highs, the news has come in that trading in Italian bank shares have been suspended.
Maybe this is the worse that will happen today, but let's see?
Jul 24th 2012, 12:32 am
#51
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Joined: Apr 2010
Location: London (mainly)/Oliva
Posts: 2,137
Re: Economic storm this weekend?
There have been other threads related to the problems in Europe some of which predicted the collapse of Spanish finances. You didn't have to be a genius. The genius is the guy/girl who predicted when.
I do believe history shall show that the problems of Spain (and other countries probably) were exacerbated by the failure to recognise the extent of the problems.
Whether this was through incompetence or dishonesty is another matter. I suspect the latter.
Jul 24th 2012, 5:58 am
#52
Lost in BE Cyberspace
Joined: Feb 2007
Location: Land of no recession
Posts: 10,718
Re: Economic storm this weekend?
Credit ratings agency Moody's has warned the outlook for Germany's AAA credit rating is negative, the first step towards a possible downgrade.
http://www.bbc.co.uk/news/business-18963810
The Yanks will not be happy until they have undermined all of Europe
http://www.bbc.co.uk/news/business-18963810
The Yanks will not be happy until they have undermined all of Europe
Jul 24th 2012, 7:35 am
#53
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Joined: Feb 2011
Location: Mallorca
Posts: 19,367
Re: Economic storm this weekend?
Especially considering that the "Yanks" economy is slowing due to the uncertainty of the European economic crisis, the Fed has been doing everything possible to encourage the ECB to take drastic action to solve it, it seems only logical that they would secretly force independent credit rating agencies to downgrade Europe in the hopes of destroying any chance of recovery.
I reckon like CMan says, they're just jealous of Europe's prosperity (particularly Spain's).
Probably like taking a key and putting a big scratch in that shiny new car of theirs. After all, if someone who appears to be prosperous shows up on your street, that's what you would do, right?
Last edited by amideislas; Jul 24th 2012 at 8:27 am.
Jul 24th 2012, 7:38 am
#54
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Re: Economic storm this weekend?
Are the bars open already in Spain????
On a different note, I see Spain has banned short selling albeit temporarily, in an effort to stop a run. Desperate or genius, you decide!
On a different note, I see Spain has banned short selling albeit temporarily, in an effort to stop a run. Desperate or genius, you decide!
Jul 24th 2012, 7:50 am
#55
Banned
Joined: Feb 2011
Location: Mallorca
Posts: 19,367
Re: Economic storm this weekend?
Well, just think for a minute about the irony of that statement ("the yanks are trying to undermine Europe"). It doesn't take a few drinks to realise the sheer bollocks of it. In fact, it seems a coffee might be in order.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
Jul 24th 2012, 7:57 am
#56
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: Economic storm this weekend?
Well, just think for a minute about the irony of that statement ("the yanks are trying to undermine Europe"). It doesn't take a few drinks to realise the sheer bollocks of it. In fact, it seems a coffee might be in order.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
the same applies here, find a weakness and exploit it - sounds just like BE Spain
Jul 24th 2012, 8:02 am
#57
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Re: Economic storm this weekend?
Well, just think for a minute about the irony of that statement ("the yanks are trying to undermine Europe"). It doesn't take a few drinks to realise the sheer bollocks of it. In fact, it seems a coffee might be in order.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
There are a number of curious "anomalies" taking place at the moment. I'm wondering if maybe there might be something bigger in the works.
Jul 24th 2012, 8:06 am
#58
Joined on April fools day
Joined: Apr 2012
Location: 30 miles from a decent grocery store.
Posts: 10,642
Re: Economic storm this weekend?
Credit ratings agency Moody's has warned the outlook for Germany's AAA credit rating is negative, the first step towards a possible downgrade.
http://www.bbc.co.uk/news/business-18963810
The Yanks will not be happy until they have undermined all of Europe
http://www.bbc.co.uk/news/business-18963810
The Yanks will not be happy until they have undermined all of Europe
Jul 24th 2012, 8:27 am
#60
Lost in BE Cyberspace
Joined: May 2009
Location: Alicante province
Posts: 5,753
Re: Economic storm this weekend?
A lot of countries are seething with indignity at the markets, and credit rating agencies; countries like the US, the UK, Germany, Spain and France. Mostly they are seething because the free markets don't believe the lies of their politicians.
The EU pumps money into Spain, thinking it will calm the markets, who promptly raise Spain's borrowing rates to 7.5%, an impossible level.
The US prints more monopoly money and is flooded with imports from China, while the cheeky Chinese refuse to lower the Yuan and try to buy up large chunks of the US.
The EU pumps money into Spain, thinking it will calm the markets, who promptly raise Spain's borrowing rates to 7.5%, an impossible level.
The US prints more monopoly money and is flooded with imports from China, while the cheeky Chinese refuse to lower the Yuan and try to buy up large chunks of the US.