Is Spain past the point of no return?

Originally posted on Business 360:

(CNN) — If recent history is anything to go by, the number 7 has good reason to be feared in the European bond markets.

Once yields on Greek, Irish and Portuguese 10-year notes hit that unlucky figure, they didn’t come back down — pricing three eurozone members out of the markets in quick succession and into bailout limbo.

Though it may be arbitrary, 7 could soon become the cut off point for a new two-tier common currency; an area where peripheral members pay the high price for low growth and lack of reform, whilst the more buoyant economies of the north enjoy record-low borrowing rates.

That is unless someone can convince the German Chancellor that so called jointly-issued “eurobonds” really are the panacea.

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