• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 700 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 715 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
Ian Campbell

Ian Campbell

Through his www.BusinessTransitionSimplified.com website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world…

Contact Author

  1. Home
  2. Markets
  3. Other

Spain Headed in a Downward Spiral?

An article yesterday discusses what appears to be continued downward economic trends in Spain. I see this as hardly unexpected by those who have been following Spain closely.

I strongly suggest you read Austerity fails to close Spain's budget black hole if you have not already done that. If you participate in the financial markets, and Spain is not highly visible on your radar screen, I suggest it ought to be.

Note in particular ongoing 'adverse austerity' Spanish populace issues, and an IMF statement that Spain's economic output "won't return to the 2008 level until at least 2017. Consider the probability/credibility of any 5-year forecast being accurate for any country in today's economic environment. Then recall as a child playing being 'made dizzy' and playing 'Pin the Tail on the Donkey'.

You might also want to read Spanish bailout may not be effective, QE may not work.

At the risk of being overly repetitive, recall that in 2011 measured by GDP Spain was the 4th largest economy in the 17 country Eurozone (after Germany, France and Italy), the 5th largest economy in the 27 country European Union, and the 12th largest economy in the world. By comparison, Greece was the 8th largest economy in the Eurozone, and the 35th largest economy in the world. In 2011 Spain's reported GDP was 5 times that of Greece. (source: Wikipedia)

Consider the economic fervor Greece has caused, and continues to cause, on the world economic stage. Imagine what will happen if Spain indeed becomes the 'next Greece'.

Topical References: Austerity fails to close Spain's budget black hole, from The Financial Post, from Bloomberg News, Ben Sills, October 9, 2012 - reading time 3 minutes. Also see: Spanish bailout may not be effective, QE may not work, from Also Sprach Analyst, Peter Tchir, October 9, 2012 - reading time 3 minutes.

 

Back to homepage

Leave a comment

Leave a comment