Spain is heading back to the starting position


The Spains are unique. They made the most absurd thing possible - just like if they were drugged. First they announced that the budget will not comply with the deficit target for 2012. After that they announced an increase of their public debt by about 10% of GDP - from 69% to 79%. And finally - after "preparing" the markets with all this, they released new government bonds. And what was the result - not entire emission was sold, plus the interest rates soared. All this makes the ECB printing efforts absolutely useless. The ECB printed 1 trillion Euros in an effort to gain time at the cost of inflation. But the result is zero. Spains are heading to the starting position. It is hard to understand how such nonsense can exist in such great historically nations as European ones. More silly than this would be if they had announced that they will not pay their loans and required new loans in exchange for this promise :)


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