Spain banks get up to 100bn euros
Spain is to get up to 100bn euros ($125bn; £80bn) in loans from eurozone funds to try to help shore up its struggling banks.
http://www.bbc.co.uk/news/business-18382659
Good God.
Would the banks get this money if they weren't failing? Nope. Ergo it is a defacto reward for needing a bailout. Fiscal irresponsibility will continue until fiscal irresponsibility is NOT rewarded with unimaginable dump truckloads of money. If the practices that lead to the edge of ruin are lucrative, they will be repeated.
This is getting seriously retarded.
politicians and the banking industry are out of control
If you think 100 billion for Spain is retarded it would be a good idea to come to grips with the fact that 100 billion is just Tranche I.Originally Posted by PEMM
I'd say it's highly unlikely that is all Spain will need. I'm GUESSING another 250-500 billion behind that.
Yepp, I think this numbers are correct, too.
Flagg,
Some estimates are that Spain could need as much as $1 trillion Euros in order to address the chronic unemployment and housing crash. We haven't even begun to have this fully realized in the public domain.
Last edited by HK in AK; 06-09-2012 at 06:56 PM. Reason: edit
x2. Some of their "independent" regions like Andalucia are so rotten with corruption that not even their parliaments know the true figures.
And Italy is still waiting in the weeds. Euro Zone is dip sh!t
Just like Greece, denial after denial then they suddenly run with the begging bowl in hand.
And this rubbish about it not being a "bail out" but a special loan
It's not a car, it's an automobile.Just like Greece, denial after denial then they suddenly run with the begging bowl in hand.
And this rubbish about it not being a "bail out" but a special loan
IF Spain requires a trillion.......then I doubt the EU could possibly survive in any real shape or form as we know it as the contagion will not be held to Spain($1.5 trillion GDP)...it will spiral up the GDP food chain to Italy($2 trillion GDP), then UK($2.25 trillion), then even France($2.5 trillion) and Germany($3.25 trillion).
And who can afford to bail out UK/Italy/France? Certainly not Germany alone....and China can only do so much....and at an exceptionally crazy high political cost...PLUS China will have its own domestic worries suffering from a one-two punch of having it's two biggest export markets stroke out.
The EU is in a very tough spot with Spain.......bail them out too much and there's no reserves/depth left...you'v e blown your wad and you fall over in the next minor economic breeze blowing past.....fail to successfully bail them out enough leads to a cascading crisis which blows the EU apart at the seams.
I don't disagree that it could require a trillion.....my point is that IF it requires a trillion, then it's all over.
A bit like a quote from Planet of the Apes:
"You Maniacs! You blew it up! Ah, damn you! God damn you all to hell!"
The world will not end, but the world as we know it certainly will....I'm thinking the "return to the earth" and "simpler lifestyles" in Greece will likely become quite common in Spain as well.
I think it will be like shining a turd...for all the genuine benefits of a less stressful lifestyle,,,,the main driver for folks doing it has not been desire, but necessity.......people are just consoling themselves and those around them by pretending the opposite.
I reckon there is the very real possibility that beneath the layer of the oligarchs and the layer of exceptionally skilled/gifted in the affluent class a whole chunk of folks left over are staring in the face the real possibility of a decline in quality of life and standard of living back to 1960's-1970's levels with pockets of exception.....BUT requiring 2 incomes to support it.
Gold is the least bad option right now.....even though it will probably suffer short term if we see a short/sharp leg down.
The US Fed WILL inflate.....but it looks like a staring contest between the Fed and Congress at the moment.
I suspect if we have a manufactured/catalyzed/politicied crisis it will be before the November election or early 2013.
It's best to keep it a little bit detached in time and space from the election as well as the holiday shopping season since consumer activity and sentiment is still such a critical component to the economy.
If things blow up RIGHT on the election the chaos from that will cascade into the Xmas shopping season and could get exceptionally ugly.
I thin we could be looking at another Sept 2008 crisis and TARP 2.0.
Keep an eye on big EU banks...all it takes is one EU Lehman and we are in the poop.
Keep an eye out for Janet Yellen.....vice chairman of the Fed....possible NEXT Chairman.
Lots of media reporting limited bank runs in Greece, now Spain, and it looks like at least one in Italy now as well:
http://www.bancanetwork.it/content/s...-dei-pagamenti
Translated:
On 31 May 2012, the Special Commissioners of Bank Network Investments SpA in Extraordinary Administration (MI), with the approval of the Supervisory Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind, pursuant to art. 74 of Leg. September 1, 1993. 385 (TUB), for the period of one month. The suspension does not include client financial instruments. The measure was necessary to face the difficult situation of the bank. Organs extraordinary Bank Network Investments SpA, an intermediary member of the Interbank Deposit Protection Fund, are developing a plan for solving the crisis in order to safeguard clients' rights, provides for the intervention of Consultinvest SIM Group and Bank savings of Ravenna.
Apparently it SOUNDS like folks using this bank can't withdraw ANY money and will need to quickly change their direct deposit pay cheques.
Could just be a single bank falling over, but seems odd there's no backstop a la an Italian or EU FDIC to kep people from panicking.
Any recommendations for trading physical gold online?
If I register as a spanish bank and lend imaginary money to hobos, will I get several billion as well?
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