Spain...marches and riots shatte market calm

Toshchiy Imperatritsy Vselennoy

The crisis on the streets of Spain now theatens the economy of all in the EU.

Protestors surrounded the parliment in thousands demanding the GOVT resign....police used ubbe bullets and tea gas on their citizens to ty to calm the situation despite themselves recieving two cutbacks....

Citizens have been blocking commuting traffic on major national roads effectively bringing the county to a standstill.

Spain's central bank warned Wednesday the country's economy continues to shrink "significantly," sending the Spanish stock index tumbling and its borrowing costs rising. 'Across Europe, stock markets fell as well. Germany's DAX dropped 2 percent while the CAC-40 in France fell 2.4 percent and Britain's FTSE 100 slid 1.4 percent. The euro was also hit, down a further 0.3 percent at $1.2840.
The turmoil Wednesday ended weeks of relative calm and optimism among investors that Europe and eurozone might have turned a corner. Markets have been breathing easier since the European Central Bank said earlier this month it would buy unlimited amounts of government bonds to help countries with their debts.'
"Yesterday's anti-austerity protests in Madrid, together with today's 24-hour strike in Greece, are both reminders that rampant unemployment and a general collapse in living standards make people desperate and angry," said David Morrison, senior market strategist at GFT Markets.
"There are growing concerns that the situation across the eurozone is set to take a turn for the worse," he said.


"The demonstrations remind us that central bankers cannot solve the crisis alone. The ECB's plan to intervene in sovereign bond markets can only succeed if governments in crisis countries can convince their electorates that ongoing austerity and reform are necessary to avoid bankruptcy," said Martin Koehring of the Economist Intelligence Unit.




ERM....hello EU? Stuff is blowing up.....


World shares fell sharply and the euro hit a two-week low on Wednesday as growing opposition to measures aimed at resolving the euro zone's debt crisis unnerved investors already worried about weak global economic growth.

The selling focused on Spain, where the main share index fell 3.5 percent and yields on 10-year bonds rose back to six percent, as doubts grew about Madrid's commitment to reform due to violent protests and talk of secession by the wealthy Catalonia region.




"Markets have realised despite reducing a large number of tail risks the ECB's programme is not the solution to all the problems in the euro area," Philip Shaw, economist at Investec, said.

Markets were also reacting to a letter from Germany, Finland and the Netherlands on Tuesday that implied that any rescue funds Spain receives for its banks will remain part of its public debt - a decision which would also affect Ireland.

Well so much for a Deal for Ireland ...we should conside our options...this thing could go up

Dotsie~tmp

Was hearing from a Irish fella who lived in the north for a few years and is coming home. Its much worse than here according to him, say people eating out of bins :eek: