Do not be too proud and Germany/France – cut them a deal!
Spain’s National Statistics Bureau reported today “El número de parados crece en 85.000 personas y alcanza la cifra de 5.778.100. La tasa de paro se incrementa 38 centésimas hasta el 25,02%.” In other words, the country’s jobless rate was above 25% in the third quarter. Based on this number alone, it would be foolish to believe that Spain does not need a very large bailout.
The media and economists have made the point before that Greece, and perhaps Spain, have begun to descend into a period much like the Great Depression. The most obvious difference is that the United States had no bailout mechanism to which it could turn. If it had, the Depression might have been shortened by years. It would not have taken World War II to revive economic growth.
Spain will not have a major war to help trigger a recovery. The posturing of the government about the need for aid is as useless as it is careless…
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