Stock markets around the world fell on Friday after Spanish banks were slapped with credit downgrades. Moody’s downgraded its credit score for 16 Spanish banks, causing investors to question the stability of the euro currency.
With Greece’s banks already melting down, investor attention has shifted to Spain and its government’s ability to bail out its beleaguered banking sector. Spanish banks are overexposed to a real-estate bubble that has imploded, and the country is suffering from a recession and a 25 percent unemployment rate.
Representatives from the G-8 countries, which include the United States, Germany, France, Britain, Japan, Russia, Italy and Canada, are now meeting at Camp David to try to come up with a solution to prevent the crisis from spreading.
Based on Bible prophecy, the Trumpet expects that Germany, supported by Italy, will take an even stronger lead in dealing with this crisis. Italian Prime Minister Mario Monti arrived in Washington ahead of the summit, a subtle indication that Rome is stepping up to a greater leadership role. Continue to watch what Germany and Italy will do at this economic crossroads. ▪