Global markets continue their decline Monday morning on worries over the ongoing European debt crisis. The Dow Jones Industrial Average ended last Friday's session down 121 points.
Fears about Spain needing a full-scale sovereign debt bailout have increased in the past week. The yield on the benchmark Spanish 10-Year bond hit a Euro-era high of 7.5% on the news. Meanwhile, the Bank of Spain announced its economy shrunk 0.4 percent in the second quarter.
As for Greece, European leaders are gathering in Athens Tuesday to discuss the country's latest rescue package, which could now be in jeopardy. The Prime Minister of Greece, Antonis Samaras, warned over the weekend that his country is facing a "Great Depression" and Germany's Der Spiegel magazine reported that the IMF may stop aid to Greece, sparking more fears of a Greek default.
As part of Greece's bailout, Greek leaders agreed to cut spending to 120 percent of GDP by 2020. But it does not look like the country can achieve that level of cuts in the proposed time frame. According to Der Spiegel, if Greece was allowed more time to reach that goal, the country would need additional $12 billion to $60 billion in bailout money. But it is not likely the "Troika" of international groups in charge of distributing Greece's bailout money will funnel any more funds to the broke nation. As a result, Greece could be bankrupt by September.
The U.S. 10-Year Treasury yield was pushed to a record low of 1.408 percent Monday, which according to Reuters is the lowest level since the 1800s.
As Europe's debt issues persist, so do questions over the sustainability of the Eurozone monetary union. In the accompanying video, The Daily Ticker's Henry Blodget and Breakout's Matt Nesto discuss the fate of Europe and the global economy.
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