When you look at Portuguese debtor position, you easily realize that you’re looking at something that is even worse than the Italian situation for Euro Area, how can investors possibly trust Portugal ?
Easy: they don’t, they just trust ECB.
Take a look at the ratio debt/GDP for Portugal:
Small and Medium enterprises are not getting any credit, their debt is not growing (and the same goes for Portuguese economy, something is telling us that this is not a coincidence).
The ratio between total debt to GDP now stands at 444,5%, but let’s keep on buy Portuguese bonds right ?
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