Yes, Spain Is A HUGE Domino

Spain was downgraded today, and now concerns over a minor Greek crisis are growing into the threat of a massive Spanish meltdown.

Spain would not be a minor blip on the world’s economic radar. Spanish banks have received a tremendous amount of financing from the European Central Bank (ECB).

From EconomicResources:

ECB Funding Spain

And Spanish banks also rely on interbank credit dwarfs Ireland and the rest of Europe, exposing those counterparties to banking sector risk.

From EconomicResources:

Credit Interbank Spain

Combining this likely banking sector exposure with sovereign debt exposure, it looks likely France and Germany will face significant problems if the Spanish crisis progresses.

From EconomicResources:

Exposure Spain

See Just How Desperate Spain Is To Rollover Its Debt In Their Presentation To Foreign Investors >

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