PIGS Getting Slaughtered

There is a new acronym that has been floating around for some time now, and its meaning is starting to come to fruition. The acronym PIGS, standing for 4 Eurozone countries which are in extreme economic debt include; Portugal, Ireland, Greece, and Spain.

These 4 countries have been suffering as a result of joining the European Union when in all likelihood did not have the balance sheets and numbers to be a part of the Union. As a result they have suffered from having to stick with the Euro and follow European Central Bank interest rate policy. These four countries are on a train in the polar opposite direction of our beloved BRIC countries.

Unfortunately, it’s not just the PIGS countries that need to be worried. If these countries need the Union to bail them all of Europe is in trouble. The PIGS might not be the Germany’s and France’s of Europe, nonetheless, they make up a portion of the European Union. All of these countries share the same currency so if one falls they will all feel it. As the saying goes, you are only as strong as your weakest link.

The Euro trade has been hit the past few months, especially with the recent negative news coming from Portugal and Greece.