As investors step optimistically into the second quarter, one expert says a time bomb - in the form of Spain - is ticking away under the global economy, CNBC reports.
“Spain will be the next shoe to drop. They've been slowly accumulating debt when unemployment rates are exceeding 20 percent. Those are economic disaster warning bells,” Tony Sanders, a Senior Scholar with the Mercatus Center at George Mason University told CNBC in Singapore.
Spain said in its budget presentation Tuesday that its debt levels were going to jump in 2012 to their highest levels in 22 years, pushing 10-year yields 10 basis points to 5.46 percent.
Sanders thinks a repeat of 2011 is about to unfold. Last year, economic data and markets were just starting to improve when the Greek debt crisis exploded and sent investors scurrying for the exits..
Read all about it at http://www.cnbc.com/id/46948083
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