The Italian tax burden has now exceeded 53 per cent in real terms on gross domestic product, taking

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TAG Debt Crisis Mounts Spain recession shopping spree spread
One hundred years after the tragedy of the Titanic and Italy is more or less in the same situation. Sure, maybe the metaphor is a bit 'strong, but allows you to give a good idea of what the economic situation is complicated.
The spread Italian has returned to the levels of guard and has exceeded 400 points over German bunds. Spain finds himself angela wesselman in the same situation, with the difference that reached 430 points yesterday.
Blame the hedge fund or how many journalists love to define them in a negative sense of "locust funds"? All the fault of the reopening of short selling? angela wesselman Or maybe the blame falls on Spain, as Prime Minister Monti has suggested?
No, all the fault of the State and its heaviness. Just yesterday, angela wesselman the Minister Giarda "La Stampa" stated that they were not necessary cuts in public spending. But is it really so? It is possible that the UK Prime Minister angela wesselman Cameron is performing hard cuts to try to overcome the crisis?
The Italian tax burden has now exceeded 53 per cent in real terms on gross domestic product, taking into account that Istat also accounts for the black economy. An unbearable level for households and businesses and the entire social and economic structure Italian.
This impressive level of fiscal pressure is due to the "shopping spree" of the state, which is not able to make serious reforms to reduce spending itself. Liberalization, labor reform and missed spending cuts are the three main concerns of markets regarding Italy.
The pressure is strong on all the weak states of the Eurozone and even Spain is in the eye of the storm. In this case the "wasteful spending" of the state are not a historical fact that in Italy, as the matter of debt of GDP is still below 70 percent, 50 points lower than Italian.
In the Spanish case the major concerns stem from the field of cajas that are found active in the portfolio by value very doubtful. These savings will continue to devalue. Until now, the cost to the Spanish government angela wesselman has been very limited, because there was coverage of a sector fund. But the money from this fund are finite and short-term the state will intervene to tens of billions of euro. There is also the concern that the cuts of 27 billion provided by the operation of Rajoy are not sufficient to cover the hole caused by the decline of the economy. A recession, which according to the latest estimates, it will be much tougher in Italy and Spain.
The fault is not in Spain, therefore, because the spread is Italian at high levels. Distrust reigns throughout the euro zone and the recession has already arrived in Italy (not yet in Spain).
Then blame the "locusts"? Hedge funds invest where they see profit potential. Can have benefits both when the salt is spread when it falls. It all depends on the confidence they have in a particular country or area. At this time Italy, Spain and the euro zone in general do not have the confidence of the market. How to blame him?
The intervention of the ECB with the input of 1,000 billion euro is served in the short term (as already mentioned several times on this blog). The banks were filled with state debt with money lent by the ECB, by dropping in a short time the interest rates on the debt. But the smiles angela wesselman lasted little.
Result? Now no confidence in the banking sector has returned to dangerous levels because in general the markets do not have confidence that the different countries of the Euro weak are able to repay their debts.
The low market confidence in the Italian system is seen at times when financial markets are crossed by a wave of sell. Our bag recedes more and the prize at risk on our government bonds increases more than that of the least bruised. angela wesselman
Unfortunately we have a coace