With every day approaching, it seems that the disease of non confidence in European nations is expanding. Today it was the turn of Portugal and Spain to suffer at the hands of the rating agencies downgrading their debt. It seems like the larger investors are having a bout of no confidence in the ability of Europe to handle its debt or help its neighbors when they are in deep trouble. And the price of bailing Greece keeps getting higher and higher. It will not be out of context to say that how will the Greeks pay for all this debt upon the debt they already owe to the outside investors.
Even Spain is in trouble too since they have to come up with 225 billion euros to pay for the debt that they have amassed. If for example the investors go after Portugal and then Spain, what is there to stop them to go after Ireland and Italy? There is too much debt being taken by these countries and not enough revenue being generated by them and too many benefits given to their citizens who have become so used to it that they are willing to strike to keep them even when they know that it cannot be sustained for long.
This saga will keep on unfolding for the next few weeks and I will be writing about it more later.