Photo: NY Post
Spain’s bailout of regional bank CajaSur has brought the threat of Spanish sovereign debt back on the agenda. The country has had to provide assistance for the regional bank at a cost of €500 million, and this is just the beginning of what could be a series of banking bailouts in Spain.Spain is already in precarious economic condition, due to a high level of sovereign debt and high rate of unemployment. It is unlikely it will be able to grow out of its debt crisis, and it is faced with austerity measures which could cripple growth for years to come.
Hedgeye has the breakdown of just how bad the Spanish crisis is. They’ve given us permission to run their presentation.