Economic Recession Worsens in Spain, Reports Leading Financial Newsletter Profit Confidential

In two days, the Spanish stock market fell 12.0%. Michael Lombardi, lead contributor to Profit Confidential, believes this staggering decline is a result of Spanish gross domestic product (GDP) contracting at a 0.4% rate in the first quarter of 2012. Lombardi also believes that the recession worsened in the second quarter for Spain.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend
Economic Recession Worsens in Spain, Reports Leading Financial Newsletter Profit Confidential

Economic Recession Worsens in Spain, Reports Leading Financial Newsletter Profit Confidential

“The Spanish banks are saddled with mortgage debt,” states Lombardi. “That debt continues to lose value, because home prices continue to fall, further exacerbating the credit crisis.”

New York, NY (PRWEB) August 05, 2012

In two days, the Spanish stock market fell 12.0%. Michael Lombardi, lead contributor to Profit Confidential, believes this staggering decline is a result of Spanish gross domestic product (GDP) contracting at a 0.4% rate in the first quarter of 2012. Lombardi also believes that the recession worsened in the second quarter for Spain.

In the article “Proposed Bailout Money Not Enough: Credit Crisis in Spain Deteriorates,” Lombardi says that this contraction is forcing home prices to fall further in Spain.

“The Spanish banks are saddled with mortgage debt,” states Lombardi. “That debt continues to lose value, because home prices continue to fall, further exacerbating the credit crisis.”

Lombardi notes that home prices in Spain have fallen 30.0% since 2008, but they have fallen another 12.8% just in the first quarter of 2012.

“Since GDP growth in Spain contracted by more in the second quarter, we can assume with certainty that home prices continued to fall, making debt at the Spanish banks worth that much less, inflaming the credit crisis,” Lombardi reasons.

This is why he thinks the 100 billion euros in bailout money for Spain is not going to be enough to cover the bad mortgage-backed securities.

“The market knows this, which is why the credit crisis has reignited,” he asserts.

Lombardi believes the European credit crisis once again takes center stage: “The European leaders must do something and soon or a Spanish bank will go bankrupt. My guess is more money printing is on the way.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.


Contact

Follow us on: Contact's Facebook Contact's Twitter

Past News Releases Group Rss Subscribe