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Spain is getting a bailout
Comments
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worldtraveller wrote: »It appears that Spanish prime minister Mariano Rajoy doesn't believe that it's a bailout? He reckons that it's “the opening of a credit line” :rotfl:
I loved a post on The Telegraph website following his comment:
"That's right, squire, it is not a full bailout! It looks like a duck, waddles like a duck, swims like a duck and quacks like a duck. Yes, of course it's a kangaroo!" :rotfl:
I think we are still very thin on details, by the time this gets properly worked out who knows what kind of animal it is.
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Are there any figures available for empty new built properties in Spain which we could then cost at say Eur 150k a pop to start getting an idea of how big the number might be...eg 400k properties x 150k = 60bn plus of course those that have been sold but are now being reposessed etc.Thrugelmir wrote: »It took over six months for UK Treasury team to get to the bottom of Northern Rock. Then decide the only route was to nationalise the bank. As it was unsustainable as a trading operation.
So you can hardly expect a politician to know what he's talking about.
The external audit of the banks may paint a very different picture. JP Morgan are suggesting that potential liabilities are much much greater.I think....0 -
Are there any figures available for empty new built properties in Spain which we could then cost at say Eur 150k a pop to start getting an idea of how big the number might be...eg 400k properties x 150k = 60bn plus of course those that have been sold but are now being reposessed etc.
If you have seen some of the programs on Spanish empty properties you would be well aware lots of the land and the buildings on them didn't cost that much when they were built.
Remember to make a profit you have to keep your costs low and over inflate the price you sell at.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
Are there any figures available for empty new built properties in Spain which we could then cost at say Eur 150k a pop to start getting an idea of how big the number might be...eg 400k properties x 150k = 60bn plus of course those that have been sold but are now being reposessed etc.
Banks have around 200,000 repossessed properties on their books.0 -
worldtraveller wrote: »Reuters are reporting that two anonymous EU sources and one from Germany are saying that Spain is expected to make a request for aid this weekend for it's banking sector.
As I've always understood it, EU bodies can only legally lend funds to a state, not any bank(s) directly. The only option therefore, should this request be made, would appear to be that funds would probably be paid to Spain's Fondo de Reestructuracion Ordenada Bancaria (FROB) fund. The question then is what conditions would be applied and what 'monitoring' would be imposed by the EU.
According to the statement issued yesterday the funds will indeed be channeled through the FROB fund. That will mean that it will be added to government debt. If it turns out to be, say, €80 billion, it will add approx. 11% to the government debt ratio, taking it to over 100% of GDP in 2015 according to the latest IMF estimates and well above the level that many would say leads to default. That's surely bad enough in itself, but what then happens should Spain need to go cap in hand for more?There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
Why has it taken the Spanish government this long to get round to auditing the banks?Thrugelmir wrote: »The external audit of the banks may paint a very different picture. JP Morgan are suggesting that potential liabilities are much much greater."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Thrugelmir wrote: »It took over six months for UK Treasury team to get to the bottom of Northern Rock. Then decide the only route was to nationalise the bank. As it was unsustainable as a trading operation.
Initally they were hoping the finance freeze was temporary but it was not, the giant lenders of funds had no way intended to take the risks that had been going on.
It was supposed to be AAA I guess and the instigator of it all was the highest grade lender of them all, the US government backed housing debt agencies.
Instead it was trash, so that it took so long for them to realise it was irreversible was maybe a fault but in theory NR could operate under the previous protocol0 -
Spanish 10-year bond yields up as high as 6.834% today, the highest in 13 years!There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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Dan Hannan, always good for some straight talking about Europe:
http://www.youtube.com/watch?feature=player_embedded&v=1GrxHDyXyj8There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
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