Greek riots were part of a National Strike but rioters also took to the streets of Spain as civil disorder grows in the EuroZone
With the inevitability of night following day, the Summer holidays have been followed by a market crash as the reality of the EuroZone crisis once more strikes the traders.
Yet another sticking plaster has failed to stem the arterial flow and the Euro bleeds out once more.
The ECB took the only possible action open to it in making a rash promise to buy up all EuroZone debt and that was enough to help the Euro limp through the Summer holiday period.
This week saw major riots in Spain and Greece which helped focus traders on the realities and result in huge losses on the markets.
The Spanish Prime Minister tried to stabilize the riots by promising to borrow from Germany massive amounts in bailouts.
Once more, the markets are being reminded that the inaction of EuroZone leaders is creating the fears that are preventing the rest of the world from clawing out of financial crisis and back to growth and stability. They are also being reminded that whatever the ECB promises it does not have the funds to back those promises up unless the Germans agree to write a blank cheque to the profligate EuroZone countries. Given the rhetoric of France’s President Hollande, any surrender of German funds will only fuel another profligate splurge of spending by the other troubled EuroZone countries. At this point in the crisis, massive State spending is unlikely to produce any measurable growth but simply consume funds and bring Germany down into the mire.
BSD News Desk