Merkel Hardens Position
The EU summit is a day away and pre-summit bickering is so intense that it will be difficult if not impossible to get any major agreements.
Two days ago, in a speech in German parliament, Bloomberg reported Merkel Hardens Resistance to Euro-Area Debt Sharing
The ECB stepped into the fray once again today but the the results of the Spanish debt auction today speak for themselves. The rate on 10-year bonds is close to touching the 7% mark.
The BBC reports on the "Dreadful Result"
The Spanish government sold 3.56bn euros (£3.04bn; $4.79bn) worth of bonds out of a maximum target of 4bn euros.
The auction attracted bids worth 1.5 times the securities offered. The so-called bid-to-cover ratio was down from 1.8 in October.
The eurozone was supposed to equalize trade and interest rates. The Maastricht Treaty supposedly ensures the free movement of goods, capital, people and services. Tensions were supposed to drop. Instead, the eurozone has been a complete failure.
Eurozone Complete Failure
Markit Eurozone Services and Composite PMIs show renewed contraction due to drop in services activity, making it extremely difficult to deny that Europe is in a recession. Let's take a look at some numbers.
Markit Eurozone Composite PMI®
By Brian Foglia:That Europe's economy is in shambles is a surprise to no one at this point. The eurozone has been in the media spotlight all year. We all watched and yawned as one dysfunctional peripheral economy after another was consumed by the debt contagion. Greece, Portugal, and Ireland were each punished by bond markets for their spendthrift debtor governments.