BBC News: Reports on a second bad day for Spanish and Italian 10 Year bonds, today the cost of Spain borrowing rose to 6.81%, while Italy saw its bonds raise to 6.28%.
Lets Get Real:
It is like watching a slow moving car crash folks, the 100 billion euros bailout for the Spanish Banks only bought a few hours of rest to the Markets, as the article notes the devil is in the details, there are now questions who gets paid back first, the bond holders or the lenders to Spain. If Spain wants to return to the Markets it cant if it can not promise that bond holders will get their money back, yes another EU nightmare. Also there is always the Greeks, the Greek voter must be thinking, hold on how come Spain gets a bailout without any conditions, while the old poor people of Greece have to search for food from bins on the streets. Thus by saving the Spanish the EU might have forced Greece out of the Euro, no good deed ever gets by without some punishment folks. Thus if Greece leaves this could force Spain to ask for a State bailout, that could cost three hundred billion euros. If Spain falls then Italy could be next folks, the Italians have a debt of 2 trillion, yes folks jumping off a cliff time. Tense days ahead folks.
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