Debt Crisis: Spain Back in The Danger Zone as Politicians Wrangle!

• So much for all the talk about a ‘breakthrough’ 2 weeks ago by the Eurozone politician snakes. So much for ECB’s 0.25% rate cut on Thursday! Apparently, the market has no confidence in all the actions taken! The reality is: NOTHING has been resolved. More debts (bailouts) are being piled upon existing debts to create an even bigger debt problem. The idea that bankrupt nations in Northern Europe can bail out bankrupt nations in Southern Europe is nonsensical. The Eurozone is heading for a massive collapse!
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  Debt crisis: Spain back in the dangerzone as politicians wrangle! 
  By  Louise Armitstead, http://www.telegraph.co.uk/ 
  Spanish and Italian borrowing costs soared back into the danger zone as traders bet that the policy action by central banks was inadequate defence against the continued political and financial chaos in the eurozone.
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  The yield on Spain’s benchmark 10-year bond rose above the 7pc bail-out level amid fears that opposition in Germany and Finland could crush the rescue plans agreed in Brussels last week.
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  The Finnish finance minister, Jutta Urpilainen, said her country was not prepared to keep the euro “at any cost.” She said the euro was “use for Finland”, one of the eurozone’s last remaining AAA-rated countries, but added: “Collective responsibility for other countries’ debt, economics and risks; this is not what we should be prepared for. We are constructive and want to solve the crisis, but not on any terms.”
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  European stockmarkets fell sharply, the euro dropped to its lowest level for three and a half years against the pound, and the yield on Italian 10-year bonds rose to 6.25pc, despite the move by the European Central Bank, the Bank of England, and the Bank of China to pump liquidity into their economies.
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  On Friday a frustrated Joerg Asmussen, an ECB board member, said too much was being expected of the Bank. “We must explain what the limits of our powers and mandate are,” he said in a speech. “The ECB cannot compensate for what others – notably political authorities – fail to do.” He added: “There is no substitute for good policies.”
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  In Brussels there were promises of more solutions at the Eurogroup meeting on Monday. One official told reporters that the 17 finance ministers intended to reach a “political decision” on how to support Spain.
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  read more!

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