More Pain for Spain
While everyone seems certain that a correction looms just ahead, the event itself remains elusive. But take a step back -- yes, a correction of 3% to 5% could very well be in the offing, but what about the larger picture? Is the bull market run from 2009 nearing an end? It looked that way in November -- until the European Central Bank poured an unlimited amount of cheap money into the banking system to recapitalize its ravaged books.
So as Portugal goes the way of Greece, and as Spain comes into focus, what will the ECB do next? It has already said that it's done, and now it is up to member countries to get their houses in order. Just last week there were more meetings and the weekend announcement du jour provides word that the firewall will be raised to almost $1 trillion by combining the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM). You know the problems remain when it's alphabet soup and weekend announcements....581 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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