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Spain: Inflated Optimism?
Spain: Inflated Optimism?
Justin Burkhardt | FXFocus.com
Listening to the talking heads this week was a steady dose of optimism about Spain. Just under the surface, in what we here at FXFocus like to call reality, is an entirely different picture. Rampant unemployment. Near daily anti-austerity protests. A government that nods and winks at so many parties even they are confused at what they actually said ten minutes ago.
All this market optimism is due to the backdrop of rumors of a bailout being asked for. Or maybe the bailout was being forced onto Spain. Maybe it’s both. If this all sounds like the plotline to Inception you would be right and scarily wrong. Your top isn't still spinning. This is Spain's daily reality.
The Unemployment Picture
Data from: Eurostat Last updated: Oct 13, 2012 Source: Google
In spite of what’s really going on, the optimistic outlook for Spain sparked a bullish reaction in the market squeezing the bears right out of the picture yesterday. Today the Euro lost a little bit of traction, but overall is holding tight to yesterday’s highs.
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That unemployment rate in Spain and Greece .....well shows you how fabtastic Govt spending goes for employment prospects
Govt spending sucks .....the life out of your productive economy
(Krugman, take notes you dipshit)
Just dawned on me the reason unemployment is fudged lower in US vs other countries is so foreign investors will think their money is safe here.
Trap?
scary stuff- ill-boding for a peaceful society. if CNBC used that chart the headline would scream "ITALY UNEMPLOYMENT STABILIZES-RECOVERY IMMINENT"