Friday, July 20, 2012

Spain: even more troubles.

The situation in Spain reminds me of the Russian joke:

PESSIMIST: things are so bad they can't get any worse.
OPTIMIST: oh yes they can.

Ten year Spanish bonds interest rates junped to 7.04% yesterday. Today, the rate jumped to 7.15%. How come? Speculators? No. Valencia, a semi-autonous area of Spain essentially told the central govt that it needs financial help. No, not a bailout, just help. So, the lemmings are jumping off the cliff onto a ledge of US Dollars which is soaring again.

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