Spain Edges Closer To Disaster as The Euro Crisis Spreads (And Greece is Facing a 1930s-Style Depression)!

• Spain edges closer to disaster as the euro crisis spreads (and Greece is facing a 1930s-style depression)! 
  By Hugo Duncan, Becky Barrow and James Chapman, http://www.dailymail.co.uk/
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  – Fears panic will spread from Spain to Italy and tear the Eurozone apart
  – British taxpayers could be dragged into a bailout of stricken Spain
  – FTSE 100 index of leading shares down 2% as Spain bans short-selling of shares to stem stock market losses
  – French and German markets down 3%
  – Italy heads towards bail-out with nearly £1trillion public debt
  – Spanish sovereign borrowing costs soar to crisis levels: 10-year bond yields at 7.5%, unsustainable in medium term
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  The Eurozone was back on the brink last night as Spain edged towards a financial disaster that could tear the single currency apart. Analysts said Spain’s huge economy was at a ‘tipping point’ and would inevitably need international aid.
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  In a sign that Europe’s debt crisis is deepening, Italy’s borrowing costs edged higher, Greece was was facing a 1930s-style depression and its austerity measures were said to be faltering.
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  Additionally, ratings agencies threatened to strip Germany of its gold-plated credit rating because of the risk of the crisis spreading. Treasury officials refused to discuss whether British taxpayers could be dragged into a bailout of Spain.
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  While the Coalition has extracted the UK from the Eurozone’s bailout funds, a full-blown crisis will probably mean Spain will also need a loan from the International Monetary Fund, of which Britain is a leading member. David Cameron is pushing Eurozone leaders to agree that Germany and other wealthy countries in it, such as the Netherlands, should stand behind the debts of other countries.
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  Spain has already required an emergency loan package of up to £80billion to bail out its banks but that has done nothing to quell concerns about its ability to pay its way. The country is crippled by a property crash and recession and the highest rate of unemployment in Europe.
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  Spain’s crucial ten-year bond yield – the interest rate the government pays to borrow and a key indicator of a country’s financial health – hit a new euro-era high of 7.6 per cent. That is deep in the danger zone and well above the 7 per cent level that triggered bailouts in Greece, Ireland and Portugal.
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