Experts say no to investment in Spanish bonds

Spanish Bonds may not yield as high returns in the near future

Economy experts caution investment in Spanish bonds. Their warnings are due to poor earning reports and lack of liquidity in Spain’s financial system. Unemployment in Spain is also through the roof; reaching record highs especially in the 20-29 year old age bracket

 Financial expert Jorge Villareal says that the purchase of bank bonds at this point is “very risky,” although he does not encourage current shareholders to sell bonds.

These concerns might very well be linked with recent debate over the efficiency of currency union as an economic tool. The euro restricts governments of Europeans nations from inflating currency. Countries are instead forced to cut wages instead of simply printing more money. Though celebrated in times of economic boom, the euro and the downsides of a currency union prove detrimental in time of recession.