Monday, July 23, 2012

Bleed The Patient Faster

The people in charge are determined to destroy the world.

The Bank of Spain has added to the gloom this morning, predicting that the Spanish recession deepened in the last three months.

In its latest forecasts, the central bank estimated that Spanish GDP fell by 0.4% in the second quarter of 2012, a sharper fall than the 0.3% contraction recorded in Q1. That would mean Spain's economy was 1% smaller than a year ago.

According to Reuters, the Bank's deputy governor is arguing now that the solution is "more cuts, more reforms, and new mechanisms to integrate the eurozone". But will market patience last?