Lombardi Publishing Corporations George Leong Warns that Spain Needs a Bailout to Avoid Further Financial Disaster

New York, NY (PRWEB) November 16, 2012

Investment Contrarians, an e-letter of Lombardi Publishing Corporation, a 26-year-old consumer publisher that has served over one million customers in 141 countries, warns that Spains Finance Ministers assertion that his country doesnt need a bailout at all couldnt be further from the truth. Without a financial bailout from the European Central Banks (ECB), Spains economy will continue to spin out of control, and jeopardize the stability of the eurozone.

In a recent article, financial expert George Leong said, Maybe Spain doesnt realize that when one of every four of your citizens has no job to go to, theres a problem. The ECBs buying of troubled and overpriced Spanish bonds, in an effort to reduce the financing charges, represents a bandage solution to a financial crisis.

Leong noted that Spain doesnt want a bailout, as it knows that emergency funds come with strings attached: being told what to do with its budget, spending, and austerity measures. Yet, something must be done, or Spains financial crisis will worsen. Like the United States, Spain is facing muted growth, and a tough austerity program would bind Spains spending and impact its ability to climb out of its recession.

Leong observed, Spain is declining in its economic strength. The countrys economy fell to 12th in the world in 2011. Spains economy was once the ninth largest, but with its financial crisis, it has since been surpassed by Russia, Canada, and India.

In 2013, Spain could see its economy contract by a worse-than-expected 1.5%, according to the countrys central bank. This would parlay into continued high unemployment, and the inability to recover out of its recession, according to Leong. If Spain cuts additional spending, the negative impact on growth and its recession could likely be even more devastating.

A massive reduction in spending means stagnant economic growth, said Leong, which, in turn, translates into less tax revenue for the government at a time when the national debt is estimated to rise to nearly 840 billion euros, or about US$ 1.0 trillion, by 2012.

This has the makings of a protracted financial crisis. Leong believes that what Spain needs to do is reorganize its finances, just like a company that is struggling with its books would. Spain must follow a business approach to recovery.

He concluded, The idea is that Spain would receive bailout funds to help grow its economy, create jobs growth, and pay its debt, while it puts together a tough austerity program. Without short-term pain, Spain will not see long-term gains, and its financial crisis will worsen.

Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, and to get its popular Investment Contrarian e-letter sent to you daily, visit http://www.investmentcontrarians.com. Or visit http://www.lombardipublishing.com/customer-service.html.

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