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Wednesday, April 18, 2012 – Euro Debt, Iceland, the IMF, and Forgiveness

DOW – 82 = 13,032SPX – 5 = 1385NAS – 11 = 303110 YR YLD -.03 = 1.98% OIL – 1.43 = 102.77GOLD – 8.00 = 1643.00SILV – .08 = 31.73PLAT – 5.00 = 1581.00 Spain’s non-performing loans as a proportion of total lending jumped to 8.16% in February, up from 7.91% in January and the highest level in 18 years. Data from the Bank of Spain show that Spanish banks are burdened with about 176 billion euros of “troubled” real estate assets and that 21% of the 298 billion euros of loans linked to property developers are non-performing. Despite the increase in the country’s bad loans, the yield on Spain’s 10-year bond fell to a 1-1/2 week low of 5.72% on optimism over tomorrows auctions of 2-year and 10-year Spanish securities. Will Europe and its increasingly ugly currency, the euro, get out of the crisis in one piece? This is probably the biggest question for the global economy right now. There is increasing concern that Spain and Italy will eventually default. Maybe the euro will survive but nobody seems confident of that right now. And it appears Europe is facing an economic depression which will diminish living standards and create social unrest and take years to work though. A best case scenario is years of stagnation. Actually there is another solution and we’ll get to that in a few moments. The fate of the euro has global consequences. Europe is the largest marketplace in the world. When Euro-countries and …

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