Spain Downgraded and Still no Bailout Request

As I wrote last week on the Spanish Bailout, there are no clear reasons on why the government is waiting to submit the bailout request. The speculation is heavy on Germany asking for the request to be held and there is also the argument that it could be based on denial of the size of the crisis by the Spanish government. The Finance Minister talk at the London School of Economics is the perfect example as the crowd laughed as he stated that Spain does not need a bailout.

Bill Gross seems to agree that the statement is ludicrous and adds some advice via twitter:

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza