By John Galt
June 19, 2011
No sooner did I finish posting more information about the crisis in the Eurozone, the Spanish citizenry are in the streets marching and protesting the excessively high unemployment and austerity measures they are enduring. The report from Ireland’s Journal.ie said that the government hoped the protests would be peaceful after the violence experienced in Barcelona earlier this week.
As the government fails to address the larger issues, the issue of solvency, this crisis will continue unabated. The chart of Spanish CDS is not much better than the Greeks except that it has not blown out past its previous highs:
As this five year chart of the Spanish 5 year CDS spread indicates, as the spreads widen, the unrest in the streets increases dramatically. Look for the 2010 highs to be surpassed before this summer is over.