Spain in state of total emergency

[TimberWolf]

says ex-premier Felipe Gonzalez, the country's elder statesman.

, the worst crisis we have ever lived through

He doesn't sound very optimistic. More of a half-empty guy?

[TimberWolf]

Forgot to post a link to the source: Markets braced as Spain faces 'total emergency' - World - DNA

[Mich the Tester]

says ex-premier Felipe Gonzalez, the country's elder statesman.



He doesn't sound very optimistic. More of a half-empty guy?

Just as is so often the case with those who are called pessimists, he may well be right, and it may well cause big trouble for everyone.

Frankly I think the whole Euro discussion is a red herring compared to the dangers in Greece and Spain; in or out of the EU or the Euro, northern Europe is going to have to keep sending money to Spain and Greece to prevent them becoming failed states and sinking into a nationalist or military dictatorship which would start picking fights with other countries to 'restore national pride' or some such bulltulip. Just imagine it; Greek nationalist government starts picking fights with Turkey, Spanish dictator starts picking fights with Britain and siding with Argentina on the Falklands issue. I find it rather disappointing that while populist politicians rant on with their simplistic BS which the masses swallow voraciously, the more intelligent politicians (yes, there are a few) and most of the media seem to be doing nothing to explain to the public just how high the stakes really are.

Spain and Greece simply can't be allowed to fail; the currency can be changed and eventually some deal can be done on the debts, but the geopolitical consequences of failed European states with big armies could be horrific.

Just let me know if you want any more of my special brand of pessimism today.

[TimberWolf]

Just as is so often the case with those who are called pessimists, he may well be right, and it may well cause big trouble for everyone.

...

Just let me know if you want any more of my special brand of pessimism today.

Beginning of the end of the Euro?

[BlasterBates]

I think the whole Euro discussion is a red herring

Got it in one.

The Spanish banks crisis is almost identical to the US banking crisis in 2008 which had nothing to do with the Euro either.....or Dollar if one would like to be pedantic.

[Mich the Tester]

Beginning of the end of the Euro?

I think some European governments are preparing for that quietly. I hope so at least. I think it'd be a shame to see the Euro fail, but if ending the Euro experiment in a structured way is part of the solution, then I can support that. It still won't change the fact that Spain and Greece will need support for some time to come, perhaps Spain for less time than Greece; not supporting the stability of the state in those countries would be a lot more expensive and painful than supporting them. Now go and explain that to a voter with an IQ of 100; that's what makes me worried. A currency can be changed; we've done that before, and it would probably provide some work for IT contractors, but as I say, the stakes are much higher than that.

[minestrone]

I remember people proclaiming that Spain's banks were in good shape in 2008.

I watched some mega engineering type show on discovery last week on the building of the City of culture. Looks lovely but WTF were they thinking.

[TimberWolf]

Chris Beauchamp, market analyst at IG Index, said: "Without wishing to sound apocalyptic, it does feel as if Spain is gradually shuffling towards the abyss."
http://www.belfasttelegraph.co.uk/bu...-16166227.html

Hmm, not sure you have managed to pull off not sounding apocalyptic there Chris.

[Mich the Tester]

Hmm, not sure you have managed to pull off not sounding apocalyptic there Chris.

Well 'Chris' appears to be only analysing this from a financial point of view; he has a good point, but he doesn't explain to Joe Public why 'Spain sinking into the abyss' is so 'apocalyptic'.

[petergriffin]

I remember people proclaiming that Spain's banks were in good shape in 2008.

I remember people proclaiming that Britain's banks were in good shape in 2012. <placeholder for the future>