Rev 6:5,6 NCV When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse, and its rider held a pair of scales in his hand. Then I heard something that sounded like a voice coming from the middle of the four living creatures. The voice said, "A quart of wheat for a day's pay, and three quarts of barley for a day's pay, and do not damage the olive oil and wine!"
<blockquote>“Against all odds, the frameworks of the world’s economic, political, and social systems are being shaken and are beginning to crumble.”
<p style="text-align: right;">- Jim Bakker in “Prosperity and the Coming Apocalypse”</p>
</blockquote>
Optimism about Spain’s banking bailout is fading fast after reports that Spain’s borrowing costs have risen to the highest point since the creation of the euro.
The benchmark 10-year bond yield peaked at 6.81%. The news created some ripples throughout the European Union as Italy’s 10-year bond yield hit 6.28%, the highest rate since January.
Credit ratings agency Fitch, which earlier had announced downgrades on two Spanish banks, announced that 18 of the country’s banks have now been downgraded due to economic uncertainty.
Banking experts were warning that the bailout has done nothing to really fix the problem situations.
“They’re borrowing more money, not doing anything about growth,” Paul Zemsky of ING Investment Management told the BBC. “Today we’re not worried about Spain’s banking system falling off a cliff, but other than that, nothing’s changed.”
EU finance ministers have quietly been talking about the possibility that Italy will soon need a bailout. Investors are leery of that possibility.
“The eurozone crisis needs much more than short-term measures,” IG Market’s Justin Harper told the BBC. “All the investors are seeing is political infighting rather than a collective long-term plan.”
