Relevant:
- The suffocation of unsustainable global debt -- Total global debt is now over $190 trillion and more than three times global GDP.
- What European Recovery? Unemployment at record high and debt only keeps reaching more unsustainable levels. Italy's Debt to GDP crosses 125 percent.
- Spain downgrade threat adds to eurozone debt woes
- Italy in Crisis: The Decline of the Roman Democracy and Rise of the ‘Super Mario' Technocracy
- Italy, Spain Cut by Moody's; U.K. Top Rank at Risk
2012-07-24 — mybudget360.com
It is always a sign of desperation to ban short selling. Trying to put an artificial bottom usually backfires and we are seeing this hit in Spain. The situation is unsustainable and has taken the headlines away from Greece. Spain is a much bigger economy and they are deep in a recession with headline unemployment near 25 percent. Financial and government leaders continually attempt to solve a debt crisis with more debt. How is the debt going to be serviced with 25 percent of your workforce not working and incomes are being crushed? Does it even logically make sense to give Spain more loans when they are already unable to service their current debt? A household in this position is bankrupt and basically needs to restructure their entire balance sheet. The last thing they need is larger loans but that has been the proposals for the last few years. The contagion is spreading as now Italy is being caught up in the debt crisis.
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