Thursday, August 11, 2011

My conclusion about Spain

- Spain suffers from a large set of problems: First, the groans industrial core of the Spanish economy to competition problems.

- Second, the coupling of wages to consumer prices, wages have let rise. But that impairs the international competitiveness.

- Third, the effects of the bursting housing bubble, which stems from low interest rates are still evident everywhere.

- Fourth, the unemployment makes for explosive social turmoil. Strikes are almost a daily occurrence.

- Nevertheless, the recently launched Spanish reform and the labor market more flexible help you find out from the competition fatal weakness. The Spanish economy is growing slowly for about a year. The national debt is huge, but we can not ignore the fact that with just over 60 percent is even lower than the German.

- If Spain maintains the consistent saving and reform, the chances are themselves struggling out of the crisis, despite all the reservations that one must have good.

- Spanish Government bonds should buy now only very risk-taking investors. Wait for the general election in November.

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