Thursday, May 31, 2012

Does Spexit* come before Grexit*?

Is this a riddle or some kind of a joke being told in an imaginary language!

Unfortunately it's neither funny or creative but is deadly serious business which at the end of the day may affect us all regardless of the country we live or do business in!

The question, written in plain English, is will Greece or Spain be the first to leave the EU?

For many Spain is new to the discussion of pending EU exits, although it anything but new to the overall problem of being one of the PIIGS, aka the weak sisters of the Eurozone.

I offer the analysis from Mish Shedlock that will serve as a guide.

"Interest rates on the 10-Year Spanish bond touched 6.7% today after the ECB shot down prime Minister Mariano Rajoy's Ponzi plan to recapitalize banks.

The Spanish banking condition is in such precarious shape that Matthew Lynn of Strategy Economics proposed 'Spexit' Will Come Before a 'Grexit'..."
Read the entire article including the six reasons Spain will be first to leave the EU at Global Economic Trend Analysis here.

*#Spexit and #Grexit are handles for Greece exit and Spain exit

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