The Euro’s Next Battleground: Spain
Here’s another timely story from the Wall Street Journal. Forex markets are in a doozy today with speculation of another possible ratings downgrade for Greece. A bunch of Greek banks were already downgraded earlier this week. However Spain could be the next straw to break:
Greece set off the crisis rattling the euro zone. Spain could determine whether the 16-nation currency stands or falls.
The euro zone’s No. 4 economy, Spain has an unemployment rate of 19%, a deflating housing bubble, big debts and a gaping budget deficit. Its gross domestic product contracted 3.6% in 2009 and is expected to shrink again this year, leaving Spain in its deepest and longest recession in a half-century. Continue Reading