June 11th, 2012
05:21 PM ET

TONIGHT AT 7: Investors fear Spain bailout isn't enough

Stocks fell today on the heels of the announcement that Spain will be getting a $125 billion bailout in an effort to prop up Europe's economy.

Erin Burnett talks to Wolf Blitzer about why early optimism among investors was soon replaced by doubt and anxiety and whether or not this bailout will do anything in the long run. Tune it at 7PM/ET for Erin's full deconstruct.

Filed under: Economy • Euro • International
soundoff (3 Responses)
  1. thomasvincentahearn

    While I agree largely with Kevin Katovic [because we are both reasonable, rational adults (read as "Keynesian")] that continuous stimulus is the best way, both socially and in a business sense as it allows for a stable outlook going forward, even THAT will not stabilize Europe. The central problem to Europe and the United States is the insistence on the perpetuation of defense contracts that the countries can not afford less they are forced into social austerity policies. Just as in Europe, the U.S. does not even consider reductions in defense spending, which is a full half of revenues. Now you have the situation where our societies are expected to pay AGAIN for these unnecessary programs by subsidising the financial sector, in turmoil because of a downturn in business, that governments can not counter-cyclically spend into because they've spend their money on defense programs and wars. Propping-up Europe is only putting-off the inevitable confrontation between our societies and our militaries, what we want from our governments and what our governments tell us we want, and peace with prosperity or war with bankruptcy. The only reason Germany agreed to vouchsafe PIIG debt is that the military contracts to German contractors be honored FIRST and absolutely. Any bailout from the US will carry similiar terms, perpetuating the cycle. It is the Western World's obsession with war that will bring about its ultimate downfall. Karma in action.

    June 12, 2012 at 12:30 pm | Reply
  2. william ryals

    The problems that Europe and the United States faces economically have at their root the same basic problem. We have allowed our consumer base that was previously supplied by our own manufacturers to be supplied by Chinese and other countries manufacturing.
    There is a limited number of consumers in any country and a significant percentage of them are needed to keep manufacturing and jobs going in those countries. The problem is further complicated by the attempts to compete with lower wages by paying lower wages which simply lowers the amount of money consumers have to spend.
    There is a solution and it could go something like this: REQUIRE RETAILERS TO PURCHASE A PERCENTAGE OF THE GOODS THEY BUY FOR RESALE IN CERTAIN CATEGORIES AND WHEN AVAILABLE TO BE IN THE FORM OF GOODS MADE IN THIS COUNTRY BY AMERICAN WORKERS. This also applies to other countries. We must also look at the idea that trade for trrade's sake is necessary. I personally think that trade should for things we need and for things that exceed our capacity to produce.

    June 11, 2012 at 6:34 pm | Reply
  3. kevinkatovic

    I agree with the speculators. The duration of the loans isn't long enough leaving spain unsatisfied. What spain needs is a 9 hour session with a fiscal stimulus expert like myself. I wouldn't let spain down I would do what it takes to make sure the country is satisfied. These loans aren't big enough, not that size matters that much but if Spain got the money it needed and was reinforced with consistent stimulus packages at the same time pshycologically reinforced about how asthetically apealing it was to the rest of the world as a bank things would reach the apex not amex of financial bliss. Its a combination of things that Spain needs which would insure it gets what its looking for. It takes time no one shot quick stimulus package will get it done.

    June 11, 2012 at 5:41 pm | Reply

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