SPAILOUT..
By David Vance On June 10th, 2012Well, just a mere two weeks after the Spanish Government insisted that it did not need a Bail Out, it’s asked for what could be €100bn bail out - or Spailout if you prefer.
Spain will get up to 100bn euros ($125bn; £80bn) in loans from eurozone funds to shore up its struggling banks. The move was agreed during emergency talks between eurozone finance ministers on Saturday.
And guess what? Yes, this cash will go straight to the Banks with no conditions required of the Spanish Government. No more austerity, indeed no clear line of sight as to where the cash will actually go, since the Spanish Government itself has no ides what the parlous state of the Banks actually is like! I believe €100bn is not the final figure that will be required but more likely a fraction of it. The truth is no one knows!!!
So, Ireland has suddenly woken up and is now demanding parity of conditionality with Spain! Greece goes to the polls this day week and my forecast is that it too will demand the same terms as Spain – ie cash without conditions.
In this way, the collapse of the Eurozone draws closer. It’s incredible stuff as an entire faux Monetary union heads for collapse and the people in charge of it cannot even see that they are making things worse by the day!
UPDATE; The Spanish Prime Minister has just said the Bail Out is a victory for the Euro.
Six Impossible things before breakfast.
We need to have clear sight of the money trail here and from what I read, and from what I know from previous, the ‘money’ created out-of-nothing by the ECB goes directly to the privately-owned Spoanish banks, straight onto their balance sheets – but it’s still a LOAN and the Spanish taxpayer underwrites it. Is that the case?
It appears, the lunatics really are running that asylum now ;-(
It’s a bail out for the cajas, the mutuals which are controlled by politicians. They bet heavily on the property market and lost, so everyone else in the eurozone has to pay via the inflation tax.
“The Spanish Prime Minister has just said the Bail Out is a victory for the Euro.”
Harri,
Pedro or whatever his name is has gotta say that. It’s part of the
“scam”deal to help bouster a dying cartel.Maybe when Obama gets defeated in November the Three Musketeers (Obama, Carter and Biden) will ride to the rescue and save the Union of Europa.
Aren’t we due for another Greek bailout deal yet? They’re like busses you know. None for a month or so then two come along at once.
Odd how it’s always another £5 billion please Mr Osbourne…..If it’s £5billion and once does Georgey have to ask Parliament to approve it?
Does Greek bailout number four or five mean that we are never going to see any cash back from numbers one two and three? Would any sane person lend to anyone who has already lost your previous loans? Is the Eurozone utterly barking mad?
All these answers and more on the next episode of soap……..