Spain's unemployment is alarming

Today in the news, Spain's unemployment came in at 24.4% (Chart 1), with youth unemployment at 50.5% in February 2012. At the same time Spain's credit rating was downgraded by Standard & Poor's from A to BBB+.






Chart 1: Spain Unemployment

It's not looking well for Spain, the 5th largest country in Europe. Surprisingly, the bond market stayed flat after the downgrade of Spain (Chart 2).






Chart 2: Spain 10 Yr government bond yield


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