The Spanish 10 year has blasted another 4% higher today to a new 2012 high of 6.834%
Snapshot for SPANISH GOVERNMENT GENERIC BONDS – 10 YR NOTE (GSPG10YR)
Open: |
6.52200 | High: |
6.83400 |
Low: | 6.48100 |
|---|
At this pace the crucial 7% will be passed sometime Wednesday. So much for the Spanish bailout #1….bailout #2 by the weekend??
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Not good for our Spanish friends with no metal jackets for protection
That infamous 7% rate is the tipping point that fated all other countries with debt to GDP of over 100% to the trash bin of failed governments. Spain’s total debt to GDP is 225% They are unsaveable; compeltely insaveable, because in the attempt to save Spain the ECB, EFSF and ESM will pile on even more debt in order to bail out the Spanish banks and the government itself. BY bailing out the banks they condemn the Spanish people to debt servitude and poverty. The only way for Spain to save itself is default on their debts and exit the Euro, bringing back the Peseta. Spain is too big a country to lose in the fashion piling on more debt. Greece is in extremis now with $400 billion in unpayable debt after $1.3 trillion in funding to bail out the banks that were invested into Greece. Most of that money went into Spain and Italy, both of of whom are going down the tubes.
Throwing bailout money at these problems is like putting gas on a fire. It’s only going to make the whole thing bigger when it explodes. Yet what other option do bankers have?
Can I get some of that popcorn?
and a beer ?
The dominoes keep falling.
It’s not over till it’s over as there is still plenty of Fiat to print.Lol
All of this will lead to QE by the “ZONE” and they don’t have enough = Under the table help from the FED = QE here (and soon). Your eyes and ears will deceive you young Jedi. Feel the force and go with your feeling. Listen to your gut and what you have learned guys/gals for the MSM and PTB will truly steer you wrong.
TPTB seem to have completely lost ANY sort of “control” over this system that they may have once had. You have to think that 60 or 70 years ago, someone must have said something like “What could POSSIBLY go wrong with this….?”
Yeah. SSDD.
Spanish debt crisis: ‘fear of a bank freeze is palpable’
Savers in Spain can find their banks refusing to hand over their money, even
if it is held in an instant-access account, thanks to changes to terms and
conditions introduced by the government
Local
property taxes are set to rise by 15pc, on top of recent state income and
capital gains tax increases. The national tax increase is supposed to be
temporary, but no one believes rates will come down any time soon.
A local restaurant owner complained
that her savings bank manager refused to let her take €30,000 out of her
account. The money was needed to get the restaurant ready for the summer
rush. New small print lets the bank block withdrawals, even on
instant-access accounts. It took two weeks for the bank to relent.
Apparently, it could block savings for two years if it wanted.
Banks and mutual lenders changed their terms and conditions when a
new law to limit super dipòsits (high-interest accounts) came into force
last year. Before the law took effect, big banks could afford to offer high
rates. Weaker rivals saw money walk out of the door. The new small print
might save them from a bank run, but fear of a corralito – a bank freeze –
is palpable.
When Argentina defaulted on its debts in 2001, the government simply banned
withdrawals over a certain size. Might Spain have to do the same to stop a
bank run?
[Some spanish citizens] were sold a multi-currency
mortgage in 2007 are actively considering handing back the keys to their
home, even though their debts could haunt them for life. These loans were
pegged to the Japanese yen, and banks promised zero interest rates and lower
monthly payments. Since then, the euro has dropped by some 40pc and the cost
of repaying such loans has risen by two thirds.
Recently bailed-out Bankia tried to lure young customers to its Youth Account
and offered those who saved €300 a Spiderman beach towel and the chance to
enter a draw for a free trip to New York. The bank quickly withdrew the
offer following criticism.
The best financial advice comes from Alicia, a friend who works for
fundspeople.com, a Madrid-based investment fund news service. “The more you
save, the more you can lose. So don’t save,” she says.
Other neighbours and friends ask whether they should cut their losses and run
from disastrous Banco Santander investments. The banking giant sold its own
bonds to 129,000 Spanish clients in 2007, promising juicy returns.
But those bonds were convertibles and investors now face heavy losses. If
clients do nothing by October 4, their bonds turn into Santander shares –
currently trading at around €4.70. The share price must almost triple if
investors want their money back. READ MORE
Greece watches closely as Spain plays hardball over an EU rescue
By Paul Ames, GlobalPost
As Band-Aids go, the 100 billion euro “bailout lite” for Spain looks
pretty impressive. But it could be less than a week before the euro zone
is confronted with its next existential threat.
Saturday’s announcement of massive European aid to Spain’s
beleaguered banks led to an exuberant market opening on Monday morning.
Expect markets to drop even more next Monday, if Sunday’s election in
Greece leads to a far-left victory that opens the door for a euro
departure.
Spain’s rescue immediately became a factor in the Greek election campaign.
“Developments in Spain confirm the position we’ve adopted from the
beginning – that the crisis is a pan-European problem and the way it has
been handled so far has been socially catastrophic and completely
ineffectual,” Syriza leader Alexis Tsipras said Sunday.
The euro zone gets a report card
Syriza has been riding high in opinion polls, prompting fears of a
messy Greek euro zone withdrawal with disastrous knock-on effects on
other vulnerable euro countries and the wider world economy.
European Union officials indicated Monday that the size of the aid
available for Spain’s banks — more than double the International
Monetary Fund’s estimate of their current needs — is to make sure they
can cope with the impact of a Greek exit.
Spain’s money is exclusively to support the banking sector, rather than to keep government finances afloat.
That means Spain escapes the humiliation of handing over control of
economic policy to the “men in black” from the EU and International
Monetary Fund, who are blamed in Greece for imposing austerity.
According to a leaked message carried on the front page of Spain’s El
Mundo newspaper Monday, Prime Minister Mariano Rajoy ordered his
finance minister to reject conditions that would have led to Spain
surrendering control over its economy.
According to the paper, which generally supports Spain’s conservative
government, de Guindos then told Finland, the Netherlands and others
who were demanding greater international supervision of Spanish
finances: “If you want to force Spain into a bailout get 500 billion
euros ready, plus another 700 billion for Italy which will need rescuing
later.”
In a press conference after the deal was clinched on Saturday
evening, de Guindos insisted Spain was a special case. “This is not a
bailout,” he told reporters in Madrid. “This is a loan given in very
favorable conditions.”Journalists dubbed the deal a “Spailout.”
Part of the problem is that the money Spain ends up taking up from
the 100 billion euro loan package will be added to its already fast
growing national debt. READ MORE
Greek radical left leader Alexis Tsipras insists bailout conditions must be repealed
By Elena Becatoros,Nicholas Paphitis, The Associated Press
| June 12, 2012
Head of Greece’s radical left-wing
Syriza party Alexis Tsipras speaks in Athens, Tuesday, June 12, 2012.
Tsipras, whose party came a surprise second in inconclusive May 6
elections, said he would stick to his pledge to tear up Greece’s bailout
deal, saying the austerity the country has been forced to impose in
return for billions of euros in rescue loans was leading Greece towards
collapse. (AP Photo/Petros Karadjias)
ATHENS,
Greece – Greece’s bailout conditions are so catastrophic for the
country they must be rejected, the radical left-wing party leader who
has a strong chance of winning the country’s critical election this
weekend insisted Tuesday.
If
Athens reneges on its pledges to impose more cutbacks and reform its
economy, the other European countries and International Monetary Fund
who have extended it billions of euros in rescue loans could pull the
plug on the funding, forcing Greece out of Europe’s joint euro currency.
Burdened
by a massive debt and a huge budget deficit, Greece has been dependent
on the EU-IMF rescue loans since May 2010, when it became locked out of
the international bond market by sky-high interest rates. The country is
in its fifth year of recession, taxes have increased and unemployment
has soared to nearly 22 per cent, prompting frequent and often violent
strikes and protests.
The
bailout agreement — under which Greece has had to slash spending, cut
salaries and pensions, raise taxes and pledge to fire tens of thousands
of civil servants — will be replaced with a “national reconstruction
program,” he said.
Tsipras pledged not to carry out any across-the-board spending cuts or sackings in the civil service.
Opinion polls published before a two week
pre-election ban showed Syriza neck-and-neck with the conservative New
Democracy party, which came first on May 6 and has supported the bailout
demands.
However, polls also
indicated that again no party would win enough Parliamentary seats on
June 17 to form a government. This means that unless political parties
can agree on a coalition government, a third election will have to be
held. READ MORE
Without an edit button…i can’t delete all that space that showed up in my post, sorry. What happened to that edit button anyway?
JIM ROGERS SAYS, “THE SOLUTION TO DEBT IS NOT MORE DEBT!
Full blown bank holidays–Euro wide–end of June at maximum Complete shut down.
Spain is done for, its only time now.
It ain’t over till the fat lady sings.
Maybe it should be called the BS yield…. The higher it goes the more Bull shit there slingin…
7% gain lol. Spain will go under before the next 10 months! If one wants to give their $ away give it to charity. At least it will do some good and end up in the hands of the ones who really need it. Not the bankers and politicians!
Jake since when have you worried about the amount of space you use here? lol
Wait! You mean I can earn almost 7% on my money if I loan it to Spain for 10 years? Hell I wouldn’t loan Spain a nickel for 10 minutes. Are there really people out there buying these bonds?
Dam Jake;
Mean while a good bank run is going on in Spain and Greece.
The Telegraph (London)
10.50 Some more bank lending figures which don’t paint a pretty picture for Greece and Spain:
ECB lending to banks in euros rose by a further €8.5bn last week, said Simon Ward, chief economist at Henderson Global Investors.
That was “consistent with continued deposit flight from the periphery, necessitating increased borrowing from the ECB and national central banks. Lending has increased by €52.8bn over the last five weeks,” he said.
The gap between the €52.8bn system-wide rise over the past five weeks and the €26.3bn Spanish increase in May suggests that Greek banks have suffered an outflow of up to €26bn, equivalent to 6pc of their total assets at the end of April and 15pc of their domestic deposit base.
I love the Giraffe