The Greek Contagion continues to negatively affect the world markets and the Euro.Despite a short covering rally in the Euro last week,it has not managed to hold the level and has continued its renewed slide.The Contagion Chronology of the European crisis makes for interesting reading.Asian markets which had not fallen much except for China also fell today using the Korean tensions as an excuse to sell off.The Japanese market is an inverse yen play – Yen goes up , Market goes down ; China yo-yos each day depending on how the wind is blowing in its real estate markets,with regulators coming up with newer rules to cool the bubbling China real estate.
North Korea’s Dysfunctional Regime
North Korea’s dysfunctional regime keeps doing erratic and dangerous things like shooting down a South Korean warship with a torpedo and then denying it . What’s even worse for North Korea is that the evidence was proved by an international team.North Korea is a totally basket economy ruled by a dynastic dictatorship which has no interest in the welfare of the economy and its people.To keep itself relevant it periodically does crazy things like shooting missiles near Japan,provoking incidents with South Korea and testing Nuclear Weapons to rile US.If there is one compelling case of global intervention in a country that is North Korea
Spanish Banking Crisis
Europe’s woes which began with the Greek crisis throws up a new act everyday.Yesterday the Spanish regulator was forced to seize a bank Cajasur led by priests.There was also an announcement of the merger of four such Cajas which would need capital infusion from the Spanish government.Could not understand why they would need to merge if they are all bleeding red ink from NPAs.Seems like Spain is trying to combine “Four Lehmans into one AIG”.These Cajas seem like a badly run joke if they are all like CajaSur.It is becoming clearer every day that the European problems are much deeper and bigger than what was earlier thought.