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Another Dropping Shoe For The Eurozone?

Amongst all that's been written about Greece particularly, and the Eurozone generally, its been pointed out that Greece is a tiny part of the whole, and as long as the larger members of "Club Med" manage to skirt disaster, all will be well.

The next countries on the chopping block have been Portugual, and Spain, and both acted premptively to do some budgetary pruning before the bond vigilantes came riding into their neck of the woods. Both countries are appreciably larger than Greece, in terms of GDP, so problems with either wouldn't bode well for the EU, and by extension, the Euro.

According to FT.com, it appears that some serious chinks in the armor have suddenly appeared in Spain, as the Bank of Spain seized control of CasaSur, one of Spain's privately owned savings banks. These institutions hold approximately half of the total assets of the Spanish banking system, and have extremely heavy exposure to Spanish realestate. The situation in Spain has the potential of turning into their version of the US savings and loan crisis of a couple of decades ago.

Here's the link to the article:


www.ft.com/cms/s/0/ded8233e-65c3-11df-9c...

Source: FT.com

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