Wednesday, April 25, 2012

The Spanish Domino

"We have at most a month before Spain drags down the entire EU..."
Things have gotten so bad that Spanish citizens are pulling their money out of Spain en masse: €65 billion left the Spanish banking system in March 2011 alone.
Spain Is About to Enter a Full-Scale Collapse
If Spain's crisis deepens Europe's recession, it could tip the entire world economy into a stubborn slump. The ramifications would be enormous, including: reduced odds of Barack Obama's re-election, assuming a weaker U.S. recovery; less political cohesion and more social unrest in Europe (even now, the European Union's unemployment rate is 10.2 percent); and growing pressures in many countries for economic nationalism and protectionism.

Spain is suffering a hangover from what economist Desmond Lachman of the American Enterprise Institute calls "the mother of all housing booms."
The Pain In Spain

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