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Debt Investing: Spain is Next
Pinnacle Digest writes: Spain became the most recent EU member to beg for a bailout as of Monday. Spain was the fourth country to do so and this comes as little surprise to anyone as its short-term borrowing costs almost tripled at auction on Tuesday. EconMatters suggests Moody's will likely downgrade Spain's sovereign debt to Junk status before long.
Cyprus joined the party, squeaking in before Italy, to become the fifth nation to request emergency bailout funds from the EU. Our team at Pinnacle likens it to the head pop up game at your local fair. The heads (EU members seeking bailouts) keep popping up and no matter how many times you (Germany or the ECB) smash them back down; they keep coming, popping up in every direction. Germany, and most importantly its citizens, are beginning to tire from putting out fire after fire in the EU zone.
Spain is causing the majority of stress in global markets as it's Europe's 4th largest economy. EconMatters lists the top 20 debt laden EU countries, in respect to debt to GDP ratios. The article exposes the runaway debt train of Europe and why Spain and Cyprus will surely not be the last countries to seek emergency bailout funds to shore up a broken system.
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