The following is an excerpt from my most recent issue of Private Wealth Advisory, my newsletter for private clients.
The big news that the markets are attempting to digest this week is the €100 billion Spanish bailout. This action and the upcoming Fed FOMC meeting on June 19-20 will dictate the market’s action over the next two weeks and possibly for the remainder of the year.
The first of these topics, the Spanish bailout, is an extremely complicated affair. The key takeaway issues that need to be considered are:
How the bailout was performed: who was involved and who wasn’t.
The details of the bailout structure itself.
The financial implications of the bailout.
The political implications of the bailout.
Let’s dive in.
Spain has been denying the need for a bailout for months now. Indeed, a mere two weeks ago, Prime Minister Mariano Rajoy stated that Spain would not need outside assistance. In fact, when France’s President Francois Hollande implied that Spanish banks might need outside funds at an EU summit last month, Rajoy retorted, "Hollande does not know the state of Spanish banks,"
What’s peculiar about this statement was that
http://www.zerohedge.com/contributed/2012-06-13/eu%E2%80%99s-real-agenda-%E2%80%9Clie-until-you-are-about-die%E2%80%9D
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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