Well, 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.