The Spanish Financial sector is still in a precarious condition which is underscored by the record European Central Bank (ECB) borrowing . The indications of weaknesses in Spanish banking sector arose as Cajas were forced to merge or taken over by the Spanish Central Bank.These Cajas are considered the weakest spot due to their poor […]

The Greek Contagion throws up bad news everyday.Not a day passes by it seems when the Markets and the Euro are rocked from the PIIGS.The Spanish Banking sector has been in the news lately with the “Cajas” being seized or merged together by the Spanish Central Bank.Spurred by the Greek funding problems , European countries […]

A Chronology of the Greek Contagion 1) Markets get spooked by the Greek crisis ; IMF/EU  Bailout  deemed insufficient 2) European markets and risky assets take a might fall 3) Dow crashes 1000 points in 15 minutes 4) The European Bazooka is Unleashed with a lot of Fanfare;Merkel and Sarkozy declare “war” on speculators 5) […]

The EU bazooka which led to a massive short covering rally has fizzled out with the Euro below the level that it one week ago.However I think with almost 15% fall ytd against the dollar , euro might stabilize or even rise a bit in the short term.The fall of the Euro is giving more […]

The last 2 weeks market gyrations have had their effect on the PIIGS. The rising interest rate on their bonds and the consequent effect on their economies is making the politicians sit up and take notice.While Merkel and Sarkozy the leaders of the 2 biggest EU countries play the “bad cop” routine of short squeezing […]

I was wondering in my last post that Which will be the next domino to fall after Greece? I had my answer much earlier than thought and in plural.Earlier in the day Portugal shares were down on 6% on its debt being downgrade by S&P. The ratings agency which has been ranked as one of […]