BBC News: Reports that EU Stock Markets have taken a dive of between 1% - 1.5% over the cost Spanish bonds heading up to 6.7%, while Germans bonds have fallen to 1.31%.
Lets Get Real:
If Spanish bonds head over 7% the Markets will expect Spain to ask for multi billion bailout, that would include Spanish Government debt, the debts of its banks, and the debts of its regional Governments. Yes folks we might be talking about a bailout of between half a trillion to 1 trillion in Euros. This is before Greece goes to the Polls on June 17th. The worry for the Germans is that the Greeks might be so spooked that they support austerity Parties for a time thus Germany and the EU would have to fund Greece, but down the line the Greeks just get fed up and refuse the pay. Thus more Euro billions down the toilet. One can expect the Germans to demand should the Greeks elect a Coalition Government that supports austerity to make legally binding deal, a deal that will make the Austro - Hungarian demand to the Serbs in 1914 look like a birthday card. In other words Athens would come under the control of Berlin, if they want the money from Berlin they would have to follow the demands of 4th economic Reich.
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