Spain has really hit the wall now. Given what we know of how the sovereign debt crisis has proceeded. The likelihood that Spain can escape from the rise in yields without ECB or EU-wide intervention is slim. We would need to see some very remarkable things come together. The important thing to remember about Spain is that it has dragged Italy in tow. So it should be clear that bailouts for Spain alone can't work because Italy too is imperilled.
My newsletter for the week is on Spain, its economy and the implications of the Spanish debt crisis. I expect this situation to get worse. Moreover, because the push higher in rates for Spain came after Spain unilaterally flouted its 2012 targets, I expect the euro zone to draw the wrong conclusion from this episode and force more deflationary cu...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.