Although not overly unexpected, S&P delivered another downgrade of Spain. Leaving the fine A club and joining the B club, this only shows how badly run the world’s 12th largest economy actually is. The Trader still believes majority of the analyst community still underestimate the bad loans, the state of bank’s balance sheets and the mentality of dealing with economic reality in Spain, from politicians, companies, down to the average person. The boom has ended, and the hang over is just starting. Despite all this, the top news in today’s version of El Pais, is regarding king Juan Carlos and the status of his hip after the big game safari in Botswana.
Tic tac tic tac as PIIGS yields spike further.