Spain is getting a bailout

Graham_Devon

The Catalonia region has now confirmed it will be seeking government funds alongside Valencia.

The government has responded and has sent a search party to track down Peter.

worldtraveller

Spanish banks may need a cash injection of more than €100bn (£80bn), the results of an official stress test are expected to show this week, placing more financial pressure on to an already explosive political crisis in Madrid.

A bank-by-bank test of financial stability due on Friday is expected to conclude that Spain's lenders are dangerously over-burdened with toxic debts and need to be recapitalised, restructured or shut down.

The stress test is expected to show a dramatic deterioration since the previous tests were carried out at the beginning of the summer which suggested a €60bn cash injection would be the worst-case scenario.

Telegraph

:whistle::rotfl:

sabretoothtigger

Shame all these places getting dragged through the mud, they all sound quite fancy to me.
Does no good for their names and reputations to be tainted like this especially the euro subsidy ghost town corruption thing its like a European take on 'bad day at black rock'

Most of us could borrow for less than 7.6% over ten years!!

Almost none of us are borrowing to lend to Spain which I guess confirms its the correct price as arbitrage often does.
They try to make up the gap but it doesn't solve why people were avoiding lending in the first place?

worldtraveller

The downgrade to BBB- from BBB+ late on Wednesday leaves Spain one notch above "junk" status. S&P also attached a "negative outlook", which warns of a possible downgrade in the medium term.

Telegraph.co.uk

daz378

isnt there talk of catalonia seeking independance from spain , to avoid the austerity greece,ireland as had to suffer? interesting times indeed

Graham_Devon

Funny how things change as time moves on.

Stock markets have rallied today because it seems likely Spain will apply for a bailout.

Seems a complete turnaround from the times when a country applying for a bailout would send stocks tumbling. The whole situation has been turned on it's head!

Anyway...after all the usual "we don't need, and won't take a bailout" from Spain in the last couple of months (which seems customary), it looks like they will apply for a bailout tommorow.

Oh, and as if by magic, Greece appears to have done enough (read: nothing) to get a further bailout, and (yet another) extension on the existing bailout, so that's more joy for the markets.

Strange times. A country can get a further bailout, on top of an extension on the existing bailout, as they can't afford the terms of the first one. Yet that's enough to satisfy the people investigating! Just couldn't make it all up. :undecided

There really is no point in all these "hard line" words the EU keeps coming up with, as time and time again, absolutely nothing, bar larger bailouts actually happen.

wymondham

nothing can be allowed to fail at any cost it seems...

daz378

the emperors new clothes are getting a bit frayed...

Graham_Devon

wymondham wrote: »

nothing can be allowed to fail at any cost it seems...

Well I'm honestly left wondering what will happen now.

If countries getting bailouts, on top of bailouts, with extensions to bailouts as they can't afford the terms of the first bailout....surely we are at a new level of the unknown?

We didn't know what would happen if Greece left. It simply looks as if that unknown isn't going to be allowed to happen, like you say, at any cost. Greece won't have to implement the terms, the precidence has now been set...firstly it's frankly impossible to implement the terms, secondly, they can't pay for it, thirdly, they don't have to, as they will get the money anyway.

But where does that leave us? Obviously that can't just carry on happening....can it? The money can be invented, but surely the problems can't just be ignored forevermore?

Are we now at another level of uncertainty? We've had busts before, but I'm not sure we have ever had what we have now....bust countries just getting continual bailouts, with more and more countries joining in the march down the same path? If you avoid the bust by doing this....where does that path take us? It obviously can't be a fix, as that, by definition, will become impossible. So if it can't be fixed, but simply won't be allowed to go bust...what happens? Is it simply unknown?

wotsthat

There are lots of unknowns and I know I don't know what they are; plus even if I new what the unknowns were I'm not sure I understand much better.

I just try to keep trying to sweat the small stuff - I have no control over the big stuff.