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NEWS AND VIEWS THAT IMPACT LIMITED CONSTITUTIONAL GOVERNMENT

"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Tuesday, July 24, 2012

A €300 billion bailout for Spain

A Sea Of Socialist Red Flags.
Leftist Demonstrators show a banner reading "no bread, no peace", as a protest against austerity measures announced by the Spanish government in Madrid, Spain.  Everyone is sucking on the "free" goodies provided by public teat.



Socialist Insanity  -  Spain borrows endless billions to bail out Spanish banks who in turn buy more Spanish government debt.
  • Hundreds of billions in pretend paper money changes hands from one nation to another to bail each other out.
  • Third grade student math tells you this cannot go on, but the so-called "best and brightest" leaders who attended Elite schools think this is a good idea.



Spain is just got the go-ahead to borrow €100 billion to bail out their banking system, but word is going around that a new round of massive bailouts is coming.

Germany's finance minister, Wolfgang Schäuble, will meet his Spanish counterpart, Luis de Guindos, for crisis talks amid fears that spiralling bond yields in the eurozone's fourth biggest economy will force it to seek a €300 billion bailout from the European Union and the International Monetary Fund reports the UK Guardian.

Interest rates on Spain's 10-year borrowing rose to 7.59% – the highest since the euro was created – and the stock market in Madrid fell by 5% in morning trading following fresh bad news about the financial health of the country's regions.


Spaniards protest against drastic austerity measures in Madrid
Workers call for even more government subsidies.




Observers were unimpressed by de Guindos's claim that Spain would not become the fourth eurozone country to require a formal bailout, after Murcia on Sunday became the second Spanish region to request financial assistance from the government. The Spanish finance minister categorically denied that a bailout was imminent, but media reports from Spain suggest up to six regions could require financial aid, with Catalonia next in line.

"What began as a Spanish banking bailout looks to be moving rather quickly towards a possible sovereign bailout. Overlay that with increasingly negative news on Greece and you get a fairly negative mix, so the path of least resistance for the euro is down," said Jeremy Stretch, currency strategist at CIBC.    (UK Guardian)


Spanish protesters.




2 comments:

Anonymous said...

It seems that at long last the ECB is doing something to actively engage Spain in an accelerated recovery, or rather protection of default (of which, some argue, it was never in fear of). The following is pretty much the latest of what’s out on the case (I read it just this morning) so I hope it may be of some interest to you as well - http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=5HY4PMBUVCN8&preview=article&linkid=221ae47b-5f2e-41fd-8681-2ce9f4010ba7&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d

Gary said...

Time will tell if there is a recovery or a meltdown.