Spains borrowing costs hit 7%

ILW

pqrdef wrote: »

Cartoon stereotypes again.

Possibly, but much of the market trades on sentiment.

Graham_Devon

All hopes of the Greeks electing the pro bailout party providing some relief for Spanish bonds have been dashed.

Spainish bonds rise to 7.15% this morning, and Italy's now over 6%.

"I think we've moved on a bit from Greece to be honest. While it's undoubtedly important ... but the bigger problem is 'How do you deal with Spain?' and there doesn't seem to be a satisfactory solution there," said Elisabeth Afseth, strategist at Investec in London.

Yields on 10-year Spanish bonds rose to 7.146 percent, up 23 basis points on the day. Greece, Ireland and Portugal were forced to seek international bailouts soon after their 10-year bond yields rose above 7 percent.

Mrs_Bones

Well the last 100 bn bailout didn't do a thing so how much would help, would any bailout be enough. Are we going past the stage where just chucking money at countries and hoping for the best isn't going to pacify the markets any longer?

The EU got the result they wanted in Greece but I still can't see that working out how they want it too. The result was too close. I think they will need another election within the year as this coalition won't be able to hold the country together and keep the EU happy at the same time.

Graham_Devon

Mrs_Bones wrote: »

Well the last 100 bn bailout didn't do a thing so how much would help, would any bailout be enough. Are we going past the stage where just chucking money at countries and hoping for the best isn't going to pacify the markets any longer?

The EU got the result they wanted in Greece but I still can't see that working out how they want it too. The result was too close. I think they will need another election within the year as this coalition won't be able to hold the country together and keep the EU happy at the same time.

The Greek thing is already starting to cause issues, with the ND party stating they will press ahead in seeking changes to bailouts, and Merkel stating there will be no changes under any circumstance. The ND party look to be trying to form a coaltion with a party who's mandate on the bailout is to seek changes. Not that they have much choice, as all the other parties don't stand behind the bailout. So we'll have to see who backs down first.

So now we have potential riots from the young (believe they have started?) and a pro bailout party, possibly not achiveing a bailout.

I honestly thought this would cheer the markets a bit more than it did today. Normally doesn't take much at the moment to see them gaing 2-3% in a day.

purch

Graham_Devon wrote: »

Spainish bonds rise to 7.15% this morning, and Italy's now over 6%.

The "market" is still betting on a EUR break-up.

CHF Bonds are negative, DKK Bonds yield less than Bunds.....this only makes sense if you believe that you will make a capital gain from a currency appreciation after the EUR breaks up, or at the very least the pegs that tie CHF and DKK to the EUR are broken.

HAMISH_MCTAVISH

World Bank head Robert Zoellick cited last week's "wasted" 100 billion euro ($125 billion) bailout of Spanish banks as an example of Europe's institutional shortcomings.

"To take your Spanish example -- it's actually 100 billion euros, and to have that as being a negative story? It's amazing. Why was it? It is because the delivery was extremely poor," Zoellick said. "So they took a very big bullet and they wasted it".

And the head of the Organisation for Economic Cooperation and Development, Angel Gurria, urged Europe to "take down the scaffolding" still clinging to its systems of governance and to deploy "awesome firepower" to cow the markets.

Europe still not understanding what it will take.

purch

HAMISH_MCTAVISH wrote: »

Europe still not understanding what it will take.

We all know you understand what it will take.

Post, Post and Post again :eek:

P.S. You forgot to add the Link

http://www.expatica.com/es/news/span...se_234587.html

Graham_Devon

HAMISH_MCTAVISH wrote: »

[/B]

Europe still not understanding what it will take.

You keep stating this, but are pretty upbeat about anything they do....until it fails again.

We can't just invent trillions Hamish, not without dire consequences.

What it will take, is ending this project, and it would have been a lot easier and less painful had they done it a while ago, instead of playing extend and pretend.

jobdone1

my view on all of this bailout upon bailout not just in europe but the uk as well is going to ruin the lives of many generations in the future, Its a disgrace where the hell was the highly paid jobsworths regulators in the last ten years ???????? they have let the banks run wild with dishing out cash that they new would never be returned but it gave then the performance figures for massive bonuses they have the money from the boom years done a runner left the taxpayers to clear the mess up that's it in a nut shell HAPPY DAYS

Wookster

purch wrote: »

We all know you understand what it will take.

Post, Post and Post again :eek:

P.S. You forgot to add the Link

http://www.expatica.com/es/news/span...se_234587.html

It's called the Chinese drip treatment.