Friday, May 11, 2012


Graham Summers, Chief Market Strategist at Phoenix Capital Research came up with with this interesting chart in his Gains Pains and Capital Newsletter on May 5, 2012.

Here are some more details of the Spanish Banking System in his Newsletter,

Spain is about to enter a full-scale Crisis.
 A few facts about Spain:
 *    Total Spanish banking loans are equal to 170% of Spanish GDP.
 *    Troubled loans at Spanish Banks just hit an 18-year high.
 *    Spanish Banks are drawing a record €316.3 billion from the ECB (up from €169.2 billion in February).

Overall, I remain wary of news that the situation over there is improving. Unlike its smaller neighbours like Greece, Spain is a large economy whose stability is important for the long term survival of the EURO.

Watch this space!

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