“MADRID (Reuters) – Spain, battling a debt crisis that is shaking itsgovernment, banks and companies, will soon issue new bonds to fund ailing lenders and indebted regions despite borrowing costs nearing the 7 percent level that drove other states to seek a bailout.
The move will dent the country’s strong liquidity position and further worsen public finances under scrutiny from investors and European officials who fear the euro zone’s fourth economy may go the same way as Greece, Portugal and Ireland.”
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And this is what the market was afraid of. Not Spain’s debt. Just Spain’s debt after their hand gets forced and they have to bail out their idiot populace.
i’m sure there is more to it Cain’
i guess the liquidity they have is satisfactory for current debt payments.
This move may put them in a worse financial condition down the road.
Anyway you look at this problem it is not good as economies need to create hyper growth.
That may not be on the table for quite some time for western nations…