As forex becomes more and more popular there is one common problem most new entrants have to face; the lack of sufficient capital. The majority of new traders will fund their very first forex trading account with less than $1,000 which will cause several problems for those forex traders from the start. In addition it will put them at a disadvantage in comparison to their peers who managed to sufficiently fund their trading accounts. New forex traders need to keep in mind that trading is a long-term process of learning how to trade,...
Seeking outside help and selective default two years later: this way the crisis developed in Greece. The European banking system as a whole has experienced this stress, but the repetition of the scenario in Spain could trigger the collapse of the real world level. According to the Bank for International Settlements, at the end of 2011 in the portfolios of banks around the world accumulated about 500 billion euros of the Spanish government and corporate debt. 117 billion are in the German banks, French banks are lagging behind slightly (92...
Euro zone finance ministers agreed on the allocation of financial assistance to Spain in the amount of 30 billion euros to rescue the banking system affected by the debt crisis. An emergency meeting in Brussels lasted nine hours. By the end of it ministers reported that Madrid will be able to get the money by the end of July. In addition, Spain may be granted an extension to clean up public finances. Under existing arrangements, Madrid must cut the maximum budget deficit to 3% in 2013. This period may be extended for another year. Spain is...
As Spain battles high unemployment coupled with a recession on top of a debt crisis they seem to have forgotten a golden rule when you dug yourself a hole: Stop digging! Spain is in a severe liquidity crisis and the last thing any semi-intelligent individual would want to do is drain what little liquidity remains from the system. Spain’s financial regulator announced today that it will ban short-selling in all financial markets until October 23rd and is open to extend the ban. Yes, you read that right. The government steps in and...
The Spanish government under Prime Minister Mariano Rajoy is only six months young and has had more problems to deal with than probably most his predecessors in modern history. Spain, among the hardest hit countries of the Eurozone debt contagion, saw unemployment surge from already record levels, local real estate markets plunge, tax receipts erode and borrowing cots sky-rocket. Today, bond yields rose back above7% which may jeopardize a €100 billion bailout from the European Financial Stability Facility. Terms were reached and...
