Spain Downgraded and Still no Bailout Request

October 11, 2012 Share Print 0

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:

Gross: He who hesitates is lost. Pride goeth before a fall. #Spain should swallow its pride and ask for help now!

— PIMCO (@PIMCO) October 11, 2012

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Bio
Twitter
Google+
Latest Posts

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.