BBC News: Reports that despite the EU giving Spanish Banks a bailout of 100 billion Euros the cost of 10 year Spanish bonds has risen today, the bond markets charged 6.5% today.
Lets Get Real:
It looked good for a while folks, last night the Asian Markets were up, early today the EU Markets had a upswing, but the good mood didn't last, at the end of the day the markets returned to a negative rating. As the article notes the next worry is Italy, the cost of 10 year Italian bonds rose today to 6.032%. While Spain needing a bailout could be coped with, Italy is a different matter, it is to big to fail, the new Italian Government is making the right noises with reform and that it does not need a bailout, slight problem that is what all the bailed out Countries stated before a bailout. The NEXT big cliff folks is the 2nd Greek General Election, it can be expected that the left will argue that since Spain didn't have to agree to any austerity deals to get a bailout then Greece will be released from its tough austerity deal. The Germans had no choice with Spain, just to big to lose, while Greece is a different matter, even President Hollande of France has stated that Greece has to keep to its agreed deal, thus next Saturday is Greece Day folks, either Greece is in our out of the Euro, its destiny day for Greece and the Euro.
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