The fear that unraveled during the Cypres bailout and the EU?s lowered economic forecast at the end of 2012 both battered the Spanish stock market. The Ibex his its lowest level since December 6 yesterday, closing at 7,900 points and down 1.13% on the day. In just under three weeks, investors have seen nearly three months of profits vanish.
The banks have lost more than 16 billion euros, which is near the price that the Cyprus bailout will cost. And the worst part is that if the Ibex breaks support at 7,800 points, the risk of it dropping further will increase. In the United States the situation is reversed as the Dow Jones and the S&P 500 hit all-time highs. The gap between an improving US and profligate Europe continues to widen.
