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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (135867)	10/2/2017 2:18:03 PM
From: Elroy Jetson	Respond to of 217750

It's hardly a surprise Catalonia's debt is higher than other regions in Spain. Virtually all of the manufacturing and tech facilities in Spain are located in Catalonia, the only region of Spain which glitters with wealth and prosperity. Lenders only lend when there's income to repay the debt. I have no hint that Catalonia's debt is unsustainable by their local economy. But the Spanish government does not guarantee the debt incurred by each of its states which greatly limits their ability to borrow, as is the case in America. This is also the reason Catalonian debt has traded off to junk bond status in response to the independence referendum. At least that was true until 3 days ago . In response to the independence referendum in Catalonia, the Spanish government suddenly announced an oblique pledge to possibly honor payment of Catalonia's debt. - bloomberg.com According to a Spanish Budget Ministry official, "Regardless of Catalan separatists’ attempts to declare independence from Spain, the ministry will make sure banks, suppliers and civil servants keep getting paid on time." Is that actually a Spanish guarantee of Catalonian state debt ? If investors thought so the value of Catalonian debt would have recovered - but it hasn't. Francisco Franco violently suppressed the Catalonian language and you don't have to be in Barcelona long to discover virtually everyone who lives there is very adamant and outspoken about speaking in Catalan rather than Spanish and displaying their contempt for the rest of Spain. I don't understand Catalan much better than any Spanish speaker so merchants and waiters much prefer speaking with me and other travelers in English or French rather than Spanish. There's a strong general feeling that the rest of Spain, mired in economic depression, is reaping their just rewards. Barcelona is also filled with silent beggars who have streamed into Barcelona from Spanish-speaking regions of Spain. Old women leave slips of paper on each seat of regional trains and subways around Barcelona. The slips contain a plea translated into Catalan asking for alms. After reaching the end of the car they head back to the other end of the rail car to collect the slips and any donations. I've never seen anyone in Barcelona give these older women money and, from the grim look on their face, I don't think they expect to ever receive any. When I heard one of the woman whisper to an associate, it was in Spanish rather than Catalan. The residents of Barcelona act as if the women are invisible, unless they speak or otherwise make themselves more noticeable, at which point they're met with hostile glances. The city government allows them on public property but it seems clear the Spanish beggars are not welcome on private property.