Bankia also restated its results - now saying it made a 2.98bn-euro loss for 2011 rather than the 309m euros in profit it announced in February.
Earlier on Friday, trading in Bankia shares was suspended on the Madrid stock exchange while its management put together a restructuring plan.
Bankia has already been bailed out because of its bad property loans.Rating agency Standard and Poor's has also lowered the credit rating of Bankia and four other Spanish banks.http://www.bbc.co.uk/news/business-18213848The health of Spain's banking system is key to whether the country eventually needs to seek a bailout itself from the eurozone and the International Monetary Fund.
We MIGHT be getting close to an excuse for the US government/Fed to start QE3.
Problem is that QE1 didn't work, QE2 did even less, QE3 not likely to fix it either.....see the trend?
I want to hear the pitch on how our own recovery hinges on Spain, how it's an investment. I am surprised Obama hasn't extended a hand to Greece yet so maybe he won't. I wonder if any EU country has asked for a US bailout yet.
It will continue until US creditors turn off the tap on buying US T Bills.
Then it's a whole new game of monopoly and the US reign as sole monopoly game banker is over.
A buddy and I were doing some quick, napkin math; during lunch back in 07 discussing what we called “intervention diminishing returns” or my favorite, “throw gas on a burning house theory” for when the economy would go t1ts up as we suspected it soon would.
Anyway, the idea was that the powers that be will be forced into several waves of intervention to maintain power, each intervention more powerful and frequent than the previous yet accomplishing less while ultimately reaching futility by mid 2013 to early 2015 depending on socioeconomic volatility. Today I’m beginning to see others producing very familiar historical charts to that napkin while historic records I’ve looked at are showing similar patterns.
Our reasoning was that ultimately this whole mess isn’t about the economy; it’s a vote of no confidence by the holders of (insert debased money here) to the powers that be. You keep whipping the beast more and more, ultimately it quits pulling your cart.
The more I study this stuff the more I see fractal behavior patterns and almost thermodynamic like principles. Funny, thirty years ago I couldn’t stand economics/psychology yet today I’m fascinated with it.
I wonder if anyone is thinking that combining everyones crushing debt together makes everyone blameless in their own part of the mess. Wreck them all and start over with a brand new balance sheet belonging to everyone...sinister.
Last edited by Mein Teil; 05-26-2012 at 12:14 AM.
The international monetary system will have to be remade...version 3.0 since WWII, and resulting in the US playing a FAR less substantial role in the global state of affairs, no longer able to afford to be the planet's cop...and no longer having global reserve currency super powers....it will be a substantial change.
The US will still be A global player.....but it will likely be back to a relative position of the 1930's...with the relative rise of China, Brazil, India.....a fairly stable Germany and Russia(natural resources).....and a relative declining Japan, UK, and France.
A brand new multi polar world.
This was seen comming a while ago, warning heeded?
As predicted was inevitable, today the Spanish newspaper La Gaceta runs with a full-page article fessing up to the truth about Spain’s “green jobs” boondoggle, which happens to be the one naively cited by President Obama no less than eight times as his model for the United States. It is now out there as a bust, a costly disaster that has come undone in Spain to the point that even the Socialists admit it, with the media now in full pursuit.
Breaking the Spanish government’s admission here at Pajamas Media probably didn’t hurt their interest in finally reporting on the leaked admission. Obama’s obvious hope of rushing into place his “fundamental transformation” of America into something more like Europe’s social democracies — where even the most basic freedoms have been moved from individuals and families to the state — before the house of cards collapsed has suffered what we can only hope proves to be its fatal blow. At least on this front.
La Gaceta boldly exposes the failure of the Spanish renewable policy and how Obama has been following it. The headline screams: “Spain admits that the green economy as sold to Obama is a disaster.” http://pjmedia.com/blog/leaked-spani...pjm-exclusive/