Friday, May 28, 2010

¿Dónde está el fondo, amigo?


From earlier today, news of six banks in Spain merging* to pool resources. Not an outright merger; they will remain unique entities. However, by pooling, they can retain some balance and flexibility against the rigors of the free market — maybe a measure to nip short sellers in the bud.


This came on the heels of Fitch's downgrade of Spain's rating, which sent the market downward at mid-day.


Spain is no Greece and there should not be the ridiculous level of negativity we saw in the latter. But Spain's debt is immense and unemployment is huge. This will take time, and in the end, the focus will move on to the next Euro nation in dire straits.

España se unirán en breve


No comments: