According to Zachary Karabell stock markets are up on the
news of a $125 billion agreement to bail out Spain, but the financial
commentators aren’t convinced—and are still gearing up for economic Armageddon.
They’re wrong to panic, says Karabell. .
Over the weekend, the Spanish government bowed to the
necessity of seeking a bailout for its banking system. The amount was large:
$125 billion in loans from the European Union to stave off the collapse of
Spanish banks. The result was greeted with relief by financial markets around
the world, with stocks rising, bond prices falling, and the outflows from
southern European banks for the moment stanched.
Nonetheless, the commentary from the financial world was a
resounding, “Yes, but ...” Financeland and its attendant media have become
weary, cynical, and dismissive, the result of three years of ongoing crises of
confidence in the euro zone. It’s Greece one day, Italy the next, then Spain or
Portugal, then stern words from cash-rich but idea-poor Germany, then mixed
signals from the French. All the while increasingly worried Italians, Spanish,
Greeks, and others withdraw money from their bank accounts as the rhetoric
turns ever more grim…..
http://www.thedailybeast.com/articles/2012/06/11/markets-relieved-at-spain-bailout-deal-financial-world-still-worried.html
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