"Spain is in a crisis of huge proportions" said some guy named Jose

I was doing TV the other night and when I mentioned Spain as being something to watch for this summer, the host shut me down, saying “I’m bored with Spain.”

You don’t have to be interested in Spain, because Spain is now interested in you, Papi.  It’s fixing to send a wave of disturbing headlines your way this summer whether you’re bored or not.

How about this one from this morning as a Tapas appetizer…

From Reuters:

Spain’s sickly economy faces a “crisis of huge proportions”, a minister said on Friday, as unemployment hit its highest level in two decades and Standard and Poor’s weighed in with a two-notch downgrade of the government’s debt.

Spain’s unemployment rate shot up to 24 percent in the first quarter, the highest level since the early 1990s and one of the worst jobless figures in the world. Retail sales slumped for the twenty-first consecutive month.

“The figures are terrible for everyone and terrible for the government … Spain is in a crisis of huge proportions,” Foreign Minister Jose Manuel Garcia-Margallo said in a radio interview.

Here’s the playbook in case you weren’t paying attention:

1.  First something crazy happens there – riots, protests, government shutdowns, whatever.  52% of Spanish youth are unemployed, the only surprising thing is that they haven’t torn the fucking place apart already.

2.  Then Germany and France make a big show about how they’re not bailing it out or in or whatever.

3.  Then the other ratings agencies downgrade it past the point of usefulness as Spanish sovereign CDS blows out, bond yields climb and European equities are waterboarded.  US stocks start to struggle with a rising dollar, Treasurys knock on the door, “Uh, hi, I’m here for the gangbang?”

4.  Everyone freaks out and then the IMF starts running their mouths and we play the headline-driven Rick-On, Risk-Off game again for a few weeks.

4a.  God, I’m going to make so many sarcastic, quasi-offensive jokes about Spain during this stretch of time.  Food references, place name puns, etc.  I’m already exhausted just thinking about it…

5.  Bailout.  US equities go wild to the upside again as people come back to their senses and realize that things ain’t so bad here and stocks are the only game in town in the end.  We end up going nowhere but we take the long road to get there.

Is this going to happen for sure?  I don’t know, but I’m mentally preparing for it.


Spanish Economy in Crisis Mode (Reuters via MSNBC)

Oh and wait til you see these charts:

Spain’s current unemployment rate exceeds the US rate during the Great Depression (Sober Look)




This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. bitcoin evolution opiniones commented on Sep 29

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]

  2. fake cartier pasha automatic commented on Oct 30

    … [Trackback]

    […] Here you can find 16102 more Info to that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]

  3. DevOps commented on Nov 19

    … [Trackback]

    […] Here you will find 89099 additional Information to that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]

  4. Study in Uganda commented on Jan 05

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]

  5. Fieldmann FZK 2005-E manuals commented on Jan 21

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]

  6. bandar 77 commented on Jan 23

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2012/04/27/spain-is-in-a-crisis-of-huge-proportions-said-some-guy-named-jose/ […]