Euro Crisis Deepens - On to Spain

As Spain´s El Pais reports,  Madrid´s Ibex Index today registra su peor sesión del año con un desplome del 6,64% (registers its worse fall this year -6.64%) as investors flee the euro.

In an accompanying article, Josef Ackermann (Deutsche Bank) ha puesto en duda que Grecia sea capaz de pagar toda su deuda pese al plan de rescate acordado con la UE y el FMI (doubts Greece has the ability to pay all its debt despite the EU-FMI rescue plan).

The London Times cites another El Pais report that French President Sarkozy threatened to yank France from the euro in a meeting of Euro ministers in Madrid.

Socialist President Zapatero of Spain, the current EU president, has proved ineffectual in steering the EU as he has during his tenure in Madrid.

The aloof technocrat lacks the imagination to lead and the ideas to save his own country from financial ruin. Discredited economic policies only compound his effeteness.

The current Euro crisis was not unpredictable by many accounts, as GSM has often noted, given the failed socialist economic policies by the overextended welfare states.

The unsustainable European welfare states and their faux currency were on the radar screens of intelligence experts as far back as 2005:  In 2005, U.S. intelligence warned of Euro econ crisis and EU's demise unless welfare states downsized.

There euro-contagion is about to consume its next victim.