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Economic cracks now appearing in Spain
- Thread Starter ATCclears
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Don't worry about them, worry about us. We are in worse financial shape than any of those countries. We are just being temporarily being propped up by a printing press.
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- Thread Starter
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From the WSJ this morning:
Spain unveiled a draft 2012 budget that seeks to cut its deficit by €27 billion ($36 billion) through spending cuts and a tax increase on large companies. Deputy Prime Minister Soraya Sáenz de Santamaria said the blueprint calls for cutting central-government ministry spending by an average of nearly 17%. Civil servants' wages will remain frozen. She called the proposed budget severely austere, but essential.
Spain unveiled a draft 2012 budget that seeks to cut its deficit by €27 billion ($36 billion) through spending cuts and a tax increase on large companies. Deputy Prime Minister Soraya Sáenz de Santamaria said the blueprint calls for cutting central-government ministry spending by an average of nearly 17%. Civil servants' wages will remain frozen. She called the proposed budget severely austere, but essential.
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What she and other number crunches just cannot get through their thick skulls, a tax increase on a company is not a tax increase on companies.
Companies do not absorb cost, they do not have a magical ATM machine where they simply go get more, they pass on the tax increase to the consumers.
Which does what, takes away cash people have for other things and speeds up the downward spiral.
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The Communists are running Spain so you expect them to do something ruinious and Yet our non-communists Obobo is proposing the exact same thing with Oil Companys!
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Yeah did OH BOBO, wants to run from his thrown, and Michelle thinks her worthless @$$ is some kind queen or something, the best thing that could to that family is when this four years of tyranny is up to be pout out on the street and forced to work all week just to pay bills, high and put gas in their car, let them see what it is really like to work for living
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OECD Calls For €1 Trillion ‘Mother of All Firewalls'
By Economy Watch
The eurozone remains stuck in a delicate balance in its recovery phase, but the risk of contagion remains extremely high. According to the Organization for Economic Cooperation and Development, eurozone leaders need to increase the financial firewall to 1 trillion euros to boost market confidence.
Speaking at a news conference in Brussels, Angel Gurria, secretary-general of the Paris-based organisation said that the existing firewall is not sufficient given the current state of the eurozone economies.According to the OECD's annual eurozone report released yesterday, weaker states in the currency bloc will need at least 1 trillion euros in aid to give policymakers ‘breathing space' and to focus on growth and restoring competitiveness.
Gurria said:
Weak financial conditions, fiscal consolidation and economic adjustment are restricting demand in the short-term before the long-term benefits on stability and growth are felt. Decisive action to restore confidence and support demand is needed now... It is something you are telling the markets: "I've got the firepower and by God if I need to I am going to use it." So anybody that is speculating is going to lose their shirt.
The European Commission has been pushing for the merger of the European Financial Stability Facility and its predetermined successor, the European Stability Mechanism.
Should the merger receive the approval from EU regulators this weekend, the combined firepower of the two funds would create a 940 billion euros firewall.
Europe's paymaster, Germany, said on Monday it would support the plan to boost the funds' lending capacity, but only to a limit of 700 billion euros. Germany is insisting that Greece, Ireland, Portugal, repay 200 billion euros in existing debt.
Yet, chairman of eurozone financial ministers, Jean-Claude Juncker, said opponents such as Germany risk leaving the euro exposed to future contagion from financial markets.
Agreeing, Gurria said:
When dealing with markets, you must overshoot expectations. The mother of all firewalls should be in place, strong enough, broad enough, deep enough, tall enough, just big.
In its report, the OECD said that austerity measures need to strike a balance between what is realistic and politically feasible, or risk losing credibility.
Despite the bitter prescription and gloomy prognosis, the OECD is expecting the eurozone to grow by 0.2 percent this year, rather than an outright contraction.
What they want is a single bank with total control of the euro-economy funded by Germany
By Economy Watch
The eurozone remains stuck in a delicate balance in its recovery phase, but the risk of contagion remains extremely high. According to the Organization for Economic Cooperation and Development, eurozone leaders need to increase the financial firewall to 1 trillion euros to boost market confidence.
Speaking at a news conference in Brussels, Angel Gurria, secretary-general of the Paris-based organisation said that the existing firewall is not sufficient given the current state of the eurozone economies.According to the OECD's annual eurozone report released yesterday, weaker states in the currency bloc will need at least 1 trillion euros in aid to give policymakers ‘breathing space' and to focus on growth and restoring competitiveness.
Gurria said:
Weak financial conditions, fiscal consolidation and economic adjustment are restricting demand in the short-term before the long-term benefits on stability and growth are felt. Decisive action to restore confidence and support demand is needed now... It is something you are telling the markets: "I've got the firepower and by God if I need to I am going to use it." So anybody that is speculating is going to lose their shirt.
The European Commission has been pushing for the merger of the European Financial Stability Facility and its predetermined successor, the European Stability Mechanism.
Should the merger receive the approval from EU regulators this weekend, the combined firepower of the two funds would create a 940 billion euros firewall.
Europe's paymaster, Germany, said on Monday it would support the plan to boost the funds' lending capacity, but only to a limit of 700 billion euros. Germany is insisting that Greece, Ireland, Portugal, repay 200 billion euros in existing debt.
Yet, chairman of eurozone financial ministers, Jean-Claude Juncker, said opponents such as Germany risk leaving the euro exposed to future contagion from financial markets.
Agreeing, Gurria said:
When dealing with markets, you must overshoot expectations. The mother of all firewalls should be in place, strong enough, broad enough, deep enough, tall enough, just big.
In its report, the OECD said that austerity measures need to strike a balance between what is realistic and politically feasible, or risk losing credibility.
Despite the bitter prescription and gloomy prognosis, the OECD is expecting the eurozone to grow by 0.2 percent this year, rather than an outright contraction.
What they want is a single bank with total control of the euro-economy funded by Germany
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Don't we spend that much every 3 days or so?
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$155 million per hour
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Monday, April 2, 2012Euro Debt Crisis: When €1 Trillion May Not Be Enough
By Tyler Durden of ZeroHedge
A core piece of last week's European newsflow was that following much pushback, Angela Merkel, who understands the underlying math all too well, finally dropped her opposition to expanding the European "firewall" in the form of a combined EFSF and ESM rescue mechanisms, to bring the total "firepower" to €800 billion (ignoring for a moment that when the true dry powder of the combined vehicle is just about €500 billion net as explained here, hardly enough to rescue Spain, let alone Italy). Yet as has been explained here repeatedly, and as Merkel has figured out, this is easily the most symbolic expansion of a rescue facility ever.
Because while the ECB's agreement to allow Eurobanks to abuse its €1 trillion discount window for three years (which is what the LTRO is), following the replacement of JC Trichet with a Goldman apparatchik, at least infused the system with $1.3 trillion in new fungible liquidity (and resulted in a stock market performance boost for the ages, one which is now unwinding), the 'firewall" does not represent new money, nor is a "firewall" to begin with - it is merely one massive contingent liability which will remain unfunded in perpetuity. Slowly the German media is waking up, and in an article in Der Spiegel, the authors observe that "Even a 1-Trillion Euro Firewall wouldn't be enough." And they are correct, because the size of the firewall is completely irrelevant, as explained later. All the "firewall" does is shift even more backstop responsibility on the only true AAA-country left in the Eurozone, Germany.
However, the main cause of problems in Europe - a massive debt overhang which can at best be rolled over but never paid down due to the increasingly lower cash flow generation of Europe's(and America's) assets, still remains, and will do so until the debt is finally written down. However, it can't because one bank's liability is another bank's asset. And so we go back to square one, which is that the system is caught in the biggest Catch 22, as we explained back in 2009. We are glad to see that slowly but surely this damning conclusion is finally being understood by most.
From Spiegel:
European finance ministers meeting in Copenhagen on Friday agreed to boost the euro-zone firewall to over 800 billion euros. The move marks another U-turn on the part of the Merkel administration, which recently dropped its opposition to increasing the fund. German commentators warn that even the new firewall may still be too small.
Austrian Finance Minister Maria Fekter announced on Friday that the permanent euro rescue fund, the European Stability Mechanism (ESM), would be expanded, by considering the around €200 billion in current bailouts as being separate from the €500 billion earmarked for the ESM -- originally, the €500 billion figure was to have included the €200 billion in existing aid. The ESM, which is due to come into operation in mid-2012, will also be boosted by including around €100 billion in bilateral aid that was given to Greece in 2010, as well as aid from other EU funds, bringing the firewall's total capacity to over €800 billion.
Fekter expressed her confidence that Friday's move would be enough to calm the financial markets. "The markets are already signaling relative calm," she said. "That shows that the markets can work with what we have set up here."
The Nuclear Option
On Thursday evening, in the run-up to Friday's summit, German Finance Minister Wolfgang Schäuble had said he was prepared to combine the existing bailouts with the new permanent mechanism. He said that the €800 billion capacity was "convincing" and "sufficient."
But not everyone shares his view that the sum is enough. On Thursday, French Finance Minister François Baroin called for the permanent euro bailout fund to be increased to €1 trillion, to shore up market confidence and prevent contagion in the euro crisis. "The firewall, it's a little like the nuclear option in military planning, it's there for dissuasion, not to be used," Baroin said in a radio interview. He was echoing calls made by the Organization for Economic Cooperation and Development (OECD) earlier in the week to boost the firewall to €1 trillion.
The German press is also finally starting to wake up:
The center-right Frankfurter Allgemeine Zeitung writes:
"It is to be doubted whether all members of the Bundestag actually understand the financial dimension and the technical details of the ESM. It doesn't help matters that the federal government has repeatedly shifted its position on this issue -- as the SPD's floor leader Frank-Walter Steinmeier rightly pointed out."
"But the entire euro rescue is a balancing act. On the one hand, fiscal discipline needs to be promoted. The pressure on the crisis-stricken euro-zone members to carry out reforms must not be undermined by the knowledge that, if they fail, they will be caught by a financial safety net. On the other hand, there is the need for solidarity. Those countries that are in a better position can 'help the others to help themselves,' as Schäuble put it."
"As always in the EU, these things lead to compromises in practice, which also explains why the government has readjusted its position on the ESM. The high ratings that Merkel enjoys in the polls may be related to the fact that the Germans seem to intuitively understand this delicate maneuver."
The left-leaning Die Tageszeitung focuses on the calls to boost the ESM to €1 trillion:
"A trillion! That's how much money France is now demanding for the euro rescue fund. Until now, Chancellor Angela Merkel only wanted to come up with €700 billion. On the surface, it looks as if a Franco-German showdown is on the horizon. In fact, it is nothing more than a PR battle, where nothing is really new. It was already clear last summer that the existing EU rescue fund, the EFSF, was much too small to save Italy or Spain in an emergency. Even then, people were talking about €1 trillion as a target."
"One trillion euros is a lot of money, and yet even this huge sum will not be enough. But again, that's nothing new. For months, calculations have been doing the rounds that show that at least €1.5 trillion will be needed. The only interesting question left is how long it will take France and Germany to acknowledge this reality."
The last observation is off on the right track but is nowhere near close enough to the true conclusion, which was stated here yesterday by Mark Grant:
The Firewall Lie
Whether some proposed firewall is $760 billion or $1.3 Trillion or $13 Trillion makes no difference as in zero, nada, nothing and null. It is an IOU, a promise to pay and it is not counted in any European sovereign debt numbers nor is it counted in the figures for the European Union's debt. It will not stop Spain or Portugal or Italy from asking for or needing money. It will not stop contagion nor will it protect any nation from the calamities of another nation. If approved by the Finance Ministers it is not approved by the European Parliaments and even if approved; it accomplishes nothing besides one more unaccounted for contingent liability that is nowhere to be found on anyone's books. This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world. If you wish to be a statistic in the Greater Fool Theory be my guest but I refuse to be apart of this unadulterated scam.
In other words, the next time a crisis flares up, the only thing that will delay the unwind, as the LTRO 1 and 2 did in late 2011, is another fresh injection of liquidity, whether in exchange or not for worthless collateral which was unused to begin with, as only new money can delay the unwind.
Of course, with every new trillion in incremental cash, now that central bank balance sheets are growing exponentially, more and more is now spilling over into hard assets, despite a clogged monetary transmission mechanism. The longer Europe's farcical crisis continues, the more the status quo will have to fight tooth and nail to prevent an explosion in hard asset prices expressed in fiat. This is a fight they will lose.
Say hello to hyper inflation!
Monday, April 2, 2012Euro Debt Crisis: When €1 Trillion May Not Be Enough
By Tyler Durden of ZeroHedge
A core piece of last week's European newsflow was that following much pushback, Angela Merkel, who understands the underlying math all too well, finally dropped her opposition to expanding the European "firewall" in the form of a combined EFSF and ESM rescue mechanisms, to bring the total "firepower" to €800 billion (ignoring for a moment that when the true dry powder of the combined vehicle is just about €500 billion net as explained here, hardly enough to rescue Spain, let alone Italy). Yet as has been explained here repeatedly, and as Merkel has figured out, this is easily the most symbolic expansion of a rescue facility ever.
Because while the ECB's agreement to allow Eurobanks to abuse its €1 trillion discount window for three years (which is what the LTRO is), following the replacement of JC Trichet with a Goldman apparatchik, at least infused the system with $1.3 trillion in new fungible liquidity (and resulted in a stock market performance boost for the ages, one which is now unwinding), the 'firewall" does not represent new money, nor is a "firewall" to begin with - it is merely one massive contingent liability which will remain unfunded in perpetuity. Slowly the German media is waking up, and in an article in Der Spiegel, the authors observe that "Even a 1-Trillion Euro Firewall wouldn't be enough." And they are correct, because the size of the firewall is completely irrelevant, as explained later. All the "firewall" does is shift even more backstop responsibility on the only true AAA-country left in the Eurozone, Germany.
However, the main cause of problems in Europe - a massive debt overhang which can at best be rolled over but never paid down due to the increasingly lower cash flow generation of Europe's(and America's) assets, still remains, and will do so until the debt is finally written down. However, it can't because one bank's liability is another bank's asset. And so we go back to square one, which is that the system is caught in the biggest Catch 22, as we explained back in 2009. We are glad to see that slowly but surely this damning conclusion is finally being understood by most.
From Spiegel:
European finance ministers meeting in Copenhagen on Friday agreed to boost the euro-zone firewall to over 800 billion euros. The move marks another U-turn on the part of the Merkel administration, which recently dropped its opposition to increasing the fund. German commentators warn that even the new firewall may still be too small.
Austrian Finance Minister Maria Fekter announced on Friday that the permanent euro rescue fund, the European Stability Mechanism (ESM), would be expanded, by considering the around €200 billion in current bailouts as being separate from the €500 billion earmarked for the ESM -- originally, the €500 billion figure was to have included the €200 billion in existing aid. The ESM, which is due to come into operation in mid-2012, will also be boosted by including around €100 billion in bilateral aid that was given to Greece in 2010, as well as aid from other EU funds, bringing the firewall's total capacity to over €800 billion.
Fekter expressed her confidence that Friday's move would be enough to calm the financial markets. "The markets are already signaling relative calm," she said. "That shows that the markets can work with what we have set up here."
The Nuclear Option
On Thursday evening, in the run-up to Friday's summit, German Finance Minister Wolfgang Schäuble had said he was prepared to combine the existing bailouts with the new permanent mechanism. He said that the €800 billion capacity was "convincing" and "sufficient."
But not everyone shares his view that the sum is enough. On Thursday, French Finance Minister François Baroin called for the permanent euro bailout fund to be increased to €1 trillion, to shore up market confidence and prevent contagion in the euro crisis. "The firewall, it's a little like the nuclear option in military planning, it's there for dissuasion, not to be used," Baroin said in a radio interview. He was echoing calls made by the Organization for Economic Cooperation and Development (OECD) earlier in the week to boost the firewall to €1 trillion.
The German press is also finally starting to wake up:
The center-right Frankfurter Allgemeine Zeitung writes:
"It is to be doubted whether all members of the Bundestag actually understand the financial dimension and the technical details of the ESM. It doesn't help matters that the federal government has repeatedly shifted its position on this issue -- as the SPD's floor leader Frank-Walter Steinmeier rightly pointed out."
"But the entire euro rescue is a balancing act. On the one hand, fiscal discipline needs to be promoted. The pressure on the crisis-stricken euro-zone members to carry out reforms must not be undermined by the knowledge that, if they fail, they will be caught by a financial safety net. On the other hand, there is the need for solidarity. Those countries that are in a better position can 'help the others to help themselves,' as Schäuble put it."
"As always in the EU, these things lead to compromises in practice, which also explains why the government has readjusted its position on the ESM. The high ratings that Merkel enjoys in the polls may be related to the fact that the Germans seem to intuitively understand this delicate maneuver."
The left-leaning Die Tageszeitung focuses on the calls to boost the ESM to €1 trillion:
"A trillion! That's how much money France is now demanding for the euro rescue fund. Until now, Chancellor Angela Merkel only wanted to come up with €700 billion. On the surface, it looks as if a Franco-German showdown is on the horizon. In fact, it is nothing more than a PR battle, where nothing is really new. It was already clear last summer that the existing EU rescue fund, the EFSF, was much too small to save Italy or Spain in an emergency. Even then, people were talking about €1 trillion as a target."
"One trillion euros is a lot of money, and yet even this huge sum will not be enough. But again, that's nothing new. For months, calculations have been doing the rounds that show that at least €1.5 trillion will be needed. The only interesting question left is how long it will take France and Germany to acknowledge this reality."
The last observation is off on the right track but is nowhere near close enough to the true conclusion, which was stated here yesterday by Mark Grant:
The Firewall Lie
Whether some proposed firewall is $760 billion or $1.3 Trillion or $13 Trillion makes no difference as in zero, nada, nothing and null. It is an IOU, a promise to pay and it is not counted in any European sovereign debt numbers nor is it counted in the figures for the European Union's debt. It will not stop Spain or Portugal or Italy from asking for or needing money. It will not stop contagion nor will it protect any nation from the calamities of another nation. If approved by the Finance Ministers it is not approved by the European Parliaments and even if approved; it accomplishes nothing besides one more unaccounted for contingent liability that is nowhere to be found on anyone's books. This whole discussion is a head fake, a deception and a ruse carefully plotted out for investors in one more attempt to mislead the entire world. If you wish to be a statistic in the Greater Fool Theory be my guest but I refuse to be apart of this unadulterated scam.
In other words, the next time a crisis flares up, the only thing that will delay the unwind, as the LTRO 1 and 2 did in late 2011, is another fresh injection of liquidity, whether in exchange or not for worthless collateral which was unused to begin with, as only new money can delay the unwind.
Of course, with every new trillion in incremental cash, now that central bank balance sheets are growing exponentially, more and more is now spilling over into hard assets, despite a clogged monetary transmission mechanism. The longer Europe's farcical crisis continues, the more the status quo will have to fight tooth and nail to prevent an explosion in hard asset prices expressed in fiat. This is a fight they will lose.
Say hello to hyper inflation!
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Sadly, yes. More sad is there are ways to protect yourself - for the most part - from hyperinflation but 98% of the deluded populace just cannot/will not do it. That is because the banker owned media is constantly saying that inflation will never happen. The boob tube rules the sheeple and they gooble that right up.
The positive side is that leaves us 2%-ers with proper courses of action to hedge against what is certainly coming. No economic degree or 220 IQ required. Just get out of paper. Get real things. All paper will disintegrate in days.
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The Pain in Spain....is a forecast of what the USA will be facing
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<broken link removed>
Another week, another bout of social unrest in a Euro peripheral nation, if the fourth largest econony in the area (Spain) can even be called that. Yesterday's action saw more than a million people take to the streets in protest, while several million actually participated in the 24-hour general strike (about 77% of union workers), resulting in 176 arrests and a 104 injuries. It is estimated that 91% of all large business employees took part in the strike and/or occupied the streets. The Spanish politicians, of course, tried to downplay the rate of participation and claimed victory because the strike wasn't as bad as the last big one in 2010, but those claims merely reveal how their desperation is taking on a ridiculously childish quality at this point.
All of this was in response to newly proposed budget cuts of €27bn that are the harshest in Spain's history (along with a 7% rise in electicity/gas bills), but are STILL estimated to fall well short of what's needed to meet the deficit targets required by the Troika gang. In fact, as TAE readers (and Greeks) should know by now, this severe austerity virtually ensures that deficits and sovereign rates will spiral out of control, necessitating calls for bailouts with capital that simply doesn't exist. With a general unemployment rate of about 23% and youth unemployment at stunning levels of 50%, it is rather surprising that the pain in Spain isn't projecting itself into the streets with even greater force. One thing is for sure - Rajoy and his administration is extremely flustered, and the Eurocrats must be soiling their undergarments right now.
When the "bond vigilantes" show up at the Spanish Treasury's doorstep, because of their unprecedented austerity measures, there is no possibility of a bailout fund or debt restructuring plan that can quell the markets and ease the pain. The Spanish people will not endure any of it for much longer after seeing in no uncertain terms how it has gone and continues to go for the Greeks, who are equally unemployed and at their wit's end. Indeed, Rajoy's latest austerity proposals didn't even last more than a few hours before it was universally shot down by economists and analysts, and now everyone is wondering when exactly Spain becomes the new Greece - bailouts, austerity, rage and all.
Look at the wall art picture the author has at the link.......this is in Madrid, Spain.
--------------------------------------------------------------------------------
<broken link removed>
Another week, another bout of social unrest in a Euro peripheral nation, if the fourth largest econony in the area (Spain) can even be called that. Yesterday's action saw more than a million people take to the streets in protest, while several million actually participated in the 24-hour general strike (about 77% of union workers), resulting in 176 arrests and a 104 injuries. It is estimated that 91% of all large business employees took part in the strike and/or occupied the streets. The Spanish politicians, of course, tried to downplay the rate of participation and claimed victory because the strike wasn't as bad as the last big one in 2010, but those claims merely reveal how their desperation is taking on a ridiculously childish quality at this point.
All of this was in response to newly proposed budget cuts of €27bn that are the harshest in Spain's history (along with a 7% rise in electicity/gas bills), but are STILL estimated to fall well short of what's needed to meet the deficit targets required by the Troika gang. In fact, as TAE readers (and Greeks) should know by now, this severe austerity virtually ensures that deficits and sovereign rates will spiral out of control, necessitating calls for bailouts with capital that simply doesn't exist. With a general unemployment rate of about 23% and youth unemployment at stunning levels of 50%, it is rather surprising that the pain in Spain isn't projecting itself into the streets with even greater force. One thing is for sure - Rajoy and his administration is extremely flustered, and the Eurocrats must be soiling their undergarments right now.
When the "bond vigilantes" show up at the Spanish Treasury's doorstep, because of their unprecedented austerity measures, there is no possibility of a bailout fund or debt restructuring plan that can quell the markets and ease the pain. The Spanish people will not endure any of it for much longer after seeing in no uncertain terms how it has gone and continues to go for the Greeks, who are equally unemployed and at their wit's end. Indeed, Rajoy's latest austerity proposals didn't even last more than a few hours before it was universally shot down by economists and analysts, and now everyone is wondering when exactly Spain becomes the new Greece - bailouts, austerity, rage and all.
Look at the wall art picture the author has at the link.......this is in Madrid, Spain.
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A breaking news email from FT.com:
Moody's is preparing a sweeping downgrade of Spain's banking sector likely to be announced as early as tonight, several lenders told the Financial Times.
It was not clear which specific banks would suffer, but was thought to include at least the majority of the country's large banks.
Moody's is preparing a sweeping downgrade of Spain's banking sector likely to be announced as early as tonight, several lenders told the Financial Times.
It was not clear which specific banks would suffer, but was thought to include at least the majority of the country's large banks.
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A chart on the bank run now "quietly" occurring in Spain.
Mish's Global Economic Trend Analysis: Full-Fledged European Bank Run; ECB Deposit Insurance is Not the Answer; How FDIC Played a Part in the US Real Estate Bust; Monetarist Fools are Everywhere; Believe in Gold
Mish's Global Economic Trend Analysis: Full-Fledged European Bank Run; ECB Deposit Insurance is Not the Answer; How FDIC Played a Part in the US Real Estate Bust; Monetarist Fools are Everywhere; Believe in Gold
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I am amazed there is anything left in the vaults or are they just printing more as they need it like us
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The fact that Spain is discussing this is a sign of serious trouble ahead.
Mish's Global Economic Trend Analysis: Spain Plans to Merge All Nationalized Banks Into Gigantic Bad Bank; Merging Small Cesspools Creates Bigger, Deeper, Smellier Cesspools
Mish's Global Economic Trend Analysis: Spain Plans to Merge All Nationalized Banks Into Gigantic Bad Bank; Merging Small Cesspools Creates Bigger, Deeper, Smellier Cesspools
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- #17
From FT.com
The Spanish government is poised to invest up to €19bn in its most troubled lender, Bankia, in a bold attempt to end market scepticism about the health of the country's banking sector. The injection, which would give the state as much as 90 per cent control of Spain's second biggest domestic lender, is set to be confirmed later on Friday evening.
The Spanish government is poised to invest up to €19bn in its most troubled lender, Bankia, in a bold attempt to end market scepticism about the health of the country's banking sector. The injection, which would give the state as much as 90 per cent control of Spain's second biggest domestic lender, is set to be confirmed later on Friday evening.
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Just a matter of time, Just a matter of time
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25 Signs That The Smart Money Has Completely Written Off Southern Europe
"During the next major economic downturn, the official unemployment rate in the United States will rise well up into the double digits.
Once that happens, perhaps many more Americans will finally figure out that they should have been paying much more attention to what was taking place in Europe."
"During the next major economic downturn, the official unemployment rate in the United States will rise well up into the double digits.
Once that happens, perhaps many more Americans will finally figure out that they should have been paying much more attention to what was taking place in Europe."
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From FT.com this afternoon:
ECB rejects Madrid plan to boost Bankia
A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said
ECB rejects Madrid plan to boost Bankia
A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said
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