We always knew that the PIIGS countries were in trouble. Perhaps, it is the headline hungry media that has now shifted its spotlight on Spain.
Spain is in a very bad situation. Bad, mainly because the unemployment rate is approaching 25%! Very bad because there is nearly 50% unemployment among the youth! Standard & Poor's two notch downgrade didn't help the situation either. Yeah, as usual, the rating agencies are late! It would be interesting to know that the Spanish Government is yet to implement its plans of hiking taxes and cutting Government spend.
In summary, Spain is going down a dangerous spiral. It will probably end up as another patient on life support.
In the meanwhile, the UK has quietly slipped into a technical recession! Remember all those gloomy predictions about double dip recessions? They have come true! But, what? No hue ... no cry?
I wonder how the world economy can get back on track.
Anyways, our markets are tightening up. Are we going to see a big move? Hmmm ... looks likely.
Again, I cannot say if it is going to be an up move or a down move, so you'll have to wait and watch. :)
On the other hand, the US Dollar has continued its climb against the Indian Rupee.
Let us wait on that one!
Till then,
Happy investing! :)
Spain is in a very bad situation. Bad, mainly because the unemployment rate is approaching 25%! Very bad because there is nearly 50% unemployment among the youth! Standard & Poor's two notch downgrade didn't help the situation either. Yeah, as usual, the rating agencies are late! It would be interesting to know that the Spanish Government is yet to implement its plans of hiking taxes and cutting Government spend.
In summary, Spain is going down a dangerous spiral. It will probably end up as another patient on life support.
In the meanwhile, the UK has quietly slipped into a technical recession! Remember all those gloomy predictions about double dip recessions? They have come true! But, what? No hue ... no cry?
I wonder how the world economy can get back on track.
Anyways, our markets are tightening up. Are we going to see a big move? Hmmm ... looks likely.
Again, I cannot say if it is going to be an up move or a down move, so you'll have to wait and watch. :)
On the other hand, the US Dollar has continued its climb against the Indian Rupee.
Let us wait on that one!
Till then,
Happy investing! :)
So what about Greece? Tired of talking about Greece, huh? :)
ReplyDeleteNobody knows how long it is before the Euro zone falls apart. Spain is a much larger economy compared to Greece ... to that extent it is higher impact. It is sad ... it feels like the dog you had adopted, fed, groomed and spent on, ran away.
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