On Sunday, Spain asked the finance ministers of the 17 Euro zone countries for money to rescue its banks. According to the Associated Press, the finance ministers offered up 5 billion that the Spanish government could funnel to its banks. The rescue money for Spain will come from pools set up by other euro zone countries. The Spanish banks will pay the loans back with interest. Unlike other European countries that have a high debt to GDP ratio, Spain actually has already tightened its belt. Its problems arose from a dramatic fall in real estate prices. This plan helps Europe’s fourth largest economy avoid bankruptcy. This is critical should Greece decide or be forced to exit the Euro zone later in the month. The Greek election is scheduled for June 17th. European stocks hit a 4 week high today and Asian markets were also up. Chinese data weak but exports strong Economic data released by China over the weekend indicates that a slow down may have been avoided due to recent actions taken by the Chinese, according to CNBC. Exports rose 15.3 percent while imports rose at 12.7 percent. The forecast for exports was 6.8 percent and it is anticipated that the current level will not be sustained. Experts predict, however, that the Chinese economy will bottom out in the second quarter and will be strong the remainder of the year.
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