Europe’s Tragic Crisis: Greek Unemployment Hit Fresh Record, Cyprus Forced To Find Extra €6bn For Bailout, Spanish Home Prices Plunge Most On Record,
There was much hope in the feudal states of Europe that the monthly December drop in Greek unemployment – the first in years – was the beginning of the end for local misery. Alas, it appears the Greek statistics office leaarned a thing or two from the BLS and it was all seasonal adjustments. As reported earlier today, things just got much worse again, with January unemployment surging by 1.5% in one month to a new all time record high 27.2%. More importantly, the number of employed people in Greece, which dropped to a new record low of 3.617,771 compared to 3,888,400 a year ago (and down 11,653 from December), is now nearly as much as the entire inactive population at 3,346,423 and far below the ranks of the unemployed (1,348,694 – an all time high as well) and inactive.
Spread by gender, the unemployment rate for males was 23.9%, while a record 31.4% of eligible women had no job in January.
Finally, youth unemployment once again hit a record high 59.3% in January, even as unemployment among those aged 65-74 has soared from 0.9% in 2008 to 6.9% in 2013.
Some of the amusing, or not so amusing if you are a Greek citizen, charts and tables just release:
In total, the bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.
Cyprus’s politicians had already faced intense domestic political pressure for agreeing to impose hefty losses on savers at two struggling banks to fulfil its eurozone partners’ demands of contributing €7bn.
Buchheit was right:
Buchheit, world’s leading expert on Sovereign debt restructuring:
“I’m not sure this is over”
“Cyprus Could Need a Second Bailout”
“the situation is spiraling down… they’ll need more money because the economy is worse, tax collections less, deposits will flow out when they can flow out.”
“the EU have certainly changed the rules of the game.”
Despite reassurances from D-Boom that “Spain can once again be the engine of growth for Europe,” the troubled nation appears to be going from bad to worse. House prices dropped 9.7% YoY in Q4 2012, its biggest drop on record, taking the price back to 2004 levels. This price pressure merely exacerbates the Spanish banking system’s delinquent loans and drives up unemployment. But Spain is not alone, Slovenia, which many have their eye on for being the next bail-in, saw house prices slide 8.8% according to IBTimes. Perhaps there is a correlation between house price bubbles (cough US cough) and banking/sovereign collapse.
House prices fell at the fast pace on record in Q4 2012…