Spain faces ‘total emergency’ as fear grips markets

The Telegraph:

 Spain is facing the gravest danger since the end of the Franco dictatorship as the country is frozen out of global capital markets and slides towards an epic showdown with Europe.

A screen displays the IBEX 35 at Madrid’s stock exchange on Wednesday. Photo: AFP

 “We’re in a situation of total emergency, the worst crisis we have ever lived through” said ex-premier Felipe Gonzalez, the country’s elder statesman.

The warning came as the yields on Spanish 10-year bonds spiked to 6.7pc, pushing the “risk premium” over German Bunds to a post-euro high of 540 basis points. The IBEX index of stocks in Madrid fell 2.6pc, the lowest since the dotcom bust in 2003.

Chaos over the €23.5bn rescue of crippled lender Bankia has led to the abrupt resignation of central bank governor Miguel Ángel Fernández Ordóñez, who testified to the senate that he had been muzzled to avoid enflaming events as confidence in the country drains away.

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About Eeyore

Canadian artist and counter-jihad and freedom of speech activist as well as devout Schrödinger's catholic

5 Replies to “Spain faces ‘total emergency’ as fear grips markets”

  1. Meanwhile the famed BBC is concentrating on the Leveson enquiry.

    ‘Fiddling while Rome burns’ is not adequate to describe such gross negligence or incompetence.

  2. Can Spain convert to Islam?

    Zakat and Sharia-compliant interest-free loans seem like a solution the E.U. and Spain could buy into.

  3. The only solution is to stop spending more then you take in, someth8ing the left will never accept. This refusal to accept reality is typical of the left and is going to cause a lot of trouble over the next few years.

    What would really help Spain would be for Russia to return the gold the communist stole during the civil war and sent to Russia, I forget how much it was but many tons.

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