I posted yesterday about European concerns regarding the near recession in the Southern European countries. Today's news from Spain startled even market watchers. Spain has suspended an auction of sovereign bonds as investors take fright over the country's property crash and accelerating slide into economic crisis. Car sales fell 31pc in June, industrial production has fallen 5.5pc over the past year and the collapsing property sector is shedding almost 100,000 jobs a month. Defaults on a percent bases exceed those in the U.S., conditions bringing some banks to the brink, a source of real concern because no country in Europe has a central bank because they all surrendered to the ECU. This means the only place they can go is the ECB (dominated by France and Germany). What happens in the USA does not stay in the USA. We are in a World Economy so what happens in Europe happens here too.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/11/cnspain111.xml
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ89D1O8kwbw&refer=home