Markets fall on eurozone fears after Spain election

[dipsydoodle]

Source: BBC News

Spanish markets have fallen despite a resounding victory for the country's centre-right Popular Party in the election.

Stocks in Madrid fell 2% while the government's cost of borrowing rose.

Stock markets across Europe also saw sharp falls as fears over the eurozone debt crisis continued.

Meanwhile there were reports the European Commission will discuss so-called eurobonds, in which the eurozone issues debt for all its members.

Read more: http://www.bbc.co.uk/news/business-15817309

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The economic picture facing the new government continues to worsen. Spain's borrowing costs on Monday rose to 6.5% and the Ibex 35 stock index fell 2.05% in morning trading.

Unemployment stands at five million and the jobless rate for non-students aged under 25 is 46%.

http://www.bbc.co.uk/news/world-europe-15816071

[Javaman]

1. If there was any hope of Spain, Italy, or Greece digging themselves out of this mess...

electing a neo-con who has a platform of austerity, just killed it.

The ride just got bumpier.

[dipsydoodle]

2. Right over here

isn't the same as RW in the USA. Sarcozy , right wing for example , is left of Obama.

And as been pointed out before - all of our RW governments favour socialised healthcare.

[Javaman]

3. the newly elected Spanish Prez stated yesterday that he's going to

institute stronger austerity measures.

given how everything is falling apart, that is the very last thing that needs to be done. There is no instance in history were austerity measures have saves a failing economy.

[dipsydoodle]

4. He's got a far simpler alternative

Leave the Euro, reintroduce the Peseta and then let that devalue. Whether or not that would do the population a lot of whole good is matter of conjecture.

Some background here : http://www.bbc.co.uk/news/business-15734280

[Javaman]

5. Leaving the Euro would be the best idea, but that won't do much to help the rest of Europe.

If Italy and Greece fall in line with that, it will be many years before the financial outlook in Europe will be settled.

But I guess this is all water under the bridge at this point.

Instituting a proper policy regarding the regulation of financial dealings within the Euro structure has long since past. It would be like feeding poison to the economy now.

I'm watching this closely, because whatever shakes out in Europe, will certainly effect us here in the states.

Cheers.

[muriel_volestrangler]

8. I wouldn't call leaving the Euro 'simple'

There's no mechanism even in theory for it; lots of laws would be needed to be draw up to implement such a split; there could be endless arguments about which currencies debts and assets are valued in; and they'd have to set up their central bank with the relevant functions again. And if it looks like things could go that way, people and companies will be trying to have assets 'held' elsewhere in the eurozone to keep their value, which could cause more problems for Spanish banks. It may happen, but it wouldn't be simple to do.

[Yo_Mama]

6. That's true - the terms are relative

I don't personally see how Spain can make enough cuts to close the deficit without chopping at real growth.

Spain is in deep.

[qb]

7. Maybe it's a recognition that the RW's only concern is managing their own wealth...

not a national economy.

[elleng]

11. I think so, see #10,

but I don't think this goes for true Republicans, but rather repugs in power who want only to remain there.

[Javaman]

9. sure blame it all on Spain, and completely ignore the fucking halwits on the super committee...

Look over there! it's their fault! not the morons on the supercommittee!

grated, I knew once this guy was in (Spain), the markets would take a hit, but not a big a hit as the do nothing super committee not reaching a decision would cause.

[elleng]

10. And the Dow is down 320 before noon today.

Good chance, imo, this is largely related to 'Super' committee's failure, tho Spain probably has something to do with it. Hope those for whom committeemembers pretend they're doing this set them straight, and let them know they've got to DO SOMETHING. Buffett has tried, as has the 'millionaires' who've joined together seeking higher taxes on themselves.
Damn.

[reggie the dog]

12. the right wing wins the markets panic

the left wins, they panic

it is all orchestrated so that no matter which government is in "power" the panic can be used as an excuse to put in austerity. the panic is a fog to stop us from asking why the rich cant pay more tax, (you see they are already panicing, they cant pay more tax)

no matter who wins the markets will freak out, the other day the markets were up on the news that the right was ahead in the polls now they drop because he is elected.

the fucking banks just installed 2 new prime ministers in greece and italy, now they make this fake panic about spain so we dont say "hey, the spanish got to vote for their leader, in italy and greece there is a "national unitiy " government put in place by bureaucrats even though the majority were happy with their leaders.....


they are not even trying to keep a veil of democracy.

greece was totalitarian up until the 70s and they want it to go back, same for italy but only fascist until the 40s and spain was fascist until the 70s. the banks panic today because the right winger in spain is to the left of franco's ghost.....

the banks want world wide fascism