Spain craters global markets as traders head into holiday weekend
If Greece were to exit the Euro, Mr. Dallara says that the European Central Bank would be insolvent.
Bottom line: Before the Greek crisis has even been resolved, Spain heats up as the next major trouble spot. The only problem here is that Greece is a mosquito, #35 largest GDP in the world with $303 Billion, while Spain is #12 in the world with $1.5 Trillion GDP. If Greece leaving the Euro could cause the European Central Bank to go insolvent, one can only imagine what the outcome of similar problems in Spain might be.
Disclosure: Wall Street Sector Selector actively trades a wide range of ETFs and positions can change at any time. Wall Street Sector Selector has a position in iShares 20+ Year Treasury ETF (NYSEARCA:TLT)
If Greece were to exit the Euro, Mr. Dallara says that the European Central Bank would be insolvent.
Bottom line: Before the Greek crisis has even been resolved, Spain heats up as the next major trouble spot. The only problem here is that Greece is a mosquito, #35 largest GDP in the world with $303 Billion, while Spain is #12 in the world with $1.5 Trillion GDP. If Greece leaving the Euro could cause the European Central Bank to go insolvent, one can only imagine what the outcome of similar problems in Spain might be.
Disclosure: Wall Street Sector Selector actively trades a wide range of ETFs and positions can change at any time. Wall Street Sector Selector has a position in iShares 20+ Year Treasury ETF (NYSEARCA:TLT)