Do you wonder what happens when a Bubble Bursts? The ramifications of misguided policies last for a very long time. Spain, Portugal and Greece have suffered greatly since the 2008 credit collapse and there is no end in sight for the problems in their economies and their affects on the Global Economic Climate.
Spain’s Unemployment Situation Becomes Hopeless - 24/7 Wall St.:
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Spain’s Unemployment Situation Becomes Hopeless - 24/7 Wall St.:
"Spain’s National Statistics Institute reported that the fourth-quarter unemployment rate reached 22.9%. That is up from 21.5% in the previous quarter. Spain does not have the economic engine to improve this number, and the austerity programs it must put in place to keep global investors from abandoning its debt makes the problem even greater. The situation, in other words, has become impossible to improve.
Employment in Spain depends heavily on two industries — tourism and auto manufacturing. The car industry in Europe has been crippled by the region’s recession. Auto sales in the European Union continue to fall. Spain does not make cars that have export potential for the two largest markets — the U.S. and China. That makes a sharp recovery of the sector unlikely.
Tourism may continue to do relatively well, but the number of travelers from its neighbors will be constrained by the economic problems of their citizens. In other words, Spain’s tourism industry will not grow rapidly soon.
The pillars of its GDP have been badly eroded...."
by Douglas A. McIntyre
Read more: Spain’s Unemployment Situation Becomes Hopeless - 24/7 Wall St. http://247wallst.com/2012/01/27/spains-unemployment-situation-becomes-hopeless/#ixzz1lHMlNTiX
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