I actually thought about doing the daily on the Wells Fargo fraud 'without fraudsters' meme because it really captures the problem with regulation of our financial system but that is a policy issue. Instead, I want to focus on a macro investing and economy issue, namely the IMF forecasts. I had a few bits and piece on them earlier in the week but here are some more on Spain specifically. What the Spanish forecast highlights is the difficulty Spain will have in getting itself back under the Maastricht Treaty 3% hurdle given the present policy course. The question is what that means.
Bill Gross and other investors are piling into Spanish debt because of the ECB backstop. But there is still risk. The short end of the Spanish curve is probably fairly riskless yield pick up because I can't see...
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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.