Eurozone Crisis – Spain Successful at Selling Bonds, But For How Long

Yeah yeah, Spain has finally been able this September to sell some bonds on the international markets. If you look also at the announcement that Spain might freeze pensions increase and increase the retiring age, there is some room for optimism. On top of these, Spain has announced that they might even reach a deal next week with the European bailout fund (despite denials from the German Finance minister Wolfgang Schaeuble. But will these news be enough to save Spain from default?
Apparently all the institutional investors though so. They started to buy Euros again, which made the European single currency rise (albeit modestly – 1%) to 1.2987 to the USD. But compared to the other pigs (Portugal, Italy and Greece), Spain has been very hesitant in asking for funds. It seems though that the recent troubles of most of its provinces, which are running out of money, might push Spain to ask for help.
If it does so, this will not be good news for Europe. But again, what is good news nowadays?

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