Updates From The Eurozone
Things continue to unravel in the Eurozone. Here is a quick overview of some of the events that have taken place over the past few days (in order of importance as I see things):
concerns are said to have increased that Spain itself (as contrasted with Spain's banks) may need a financial bailout. I simply don't see how or why this ought to raise concerns to new levels, as it seems patently obvious (and has for some months now) that Spain has deeply troubling economic issues that it needs to deal with either by itself or in combination with its Eurozone partners;
Eurozone manufacturing services output shrank again in July, including in Germany and France, and the Eurozone Purchasing Managers' Index was unchanged when it was expected to rise;
Moody's on Monday reduced its outlook on Germany, Luxembourg and the Netherlands to 'negative from stable', ostensibly because Moody's thinks those countries may have to increase financial support to Italy and Spain;
the Greek Prime Minister has said Greece is now in a 'Great Depression'; and,
there is a suggestion yesterday that ten Italian cities, each with more than 50,000 residents, are on 'the verge of financial collapse'.
Moody's cuts outlook on Germany, the Netherlands to negative, from The Financial Post, from Reuters, July 23, 2012 - reading time 2 minutes.
Greece PM says country now in a 'Great Depression', from The Financial Post, from Reuters, July 23, 2012 - reading time 2 minutes.
Ten Major Italian Cities On Verge of Financial Collapse, from Mish's Global Economic Trend Analysis, Michael Shedlock, July 23, 2012 - reading time 3 minutes.