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Original post: Germany in Recession: Private Sector Sees Fastest Falls in Output and New Business Since June 2009; New Export…
Read the original: Record Low Yields Once Again on US Treasuries
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On Saturday, Bloomberg reported Six Spanish Regions May Seek Bailout After Valencia The Balearic Islands and Catalonia are among six Spanish regions that may ask for aid from the central government after Valencia sought a bailout, El Pais reported.
Ambrose Evans-Pritchard has the details in his Telegraph piece, Spanish debt crisis returns as Germany nears bailout fatigue “Demand for Spanish paper is collapsing, even for shorter-dated debt which is very worrying and raises the spectre of Spain losing market access,†said Nicholas Spiro from Spiro Sovereign Strategy. Marchel Alexandrovich from Jefferies Fixed Income said the markets are already bracing for second bigger rescue of around €400bn. “A few more weeks like this and Madrid is going to decide to it has nothing more to lose and call for a full sovereign bail-out,†he said.
The higher the tax rate, the greater the length people will go to avoid it. France is a case in point. An ‘Exodus’ of Wealthy is underway even before French parliament has passed Hollande’s proposed top tax rate of 75%.
The medicine is killing the patient. Increasing the dose is madness. Greece outside the Eurozone may well provide an inspiration for Spain, Portugal, and many other countries.