Luth

Here we go again. Bailout money required urgently to calm it all down......for a little while at least. Get that 100billion euro out quick Mrs Merkel. And then?????

HBG

Yesterday's bail-out came to 30 billion, available almost immediately.

It seems to be never ending. The useless southern states propped up with money from the more efficient northern states, money that cannot ever be paid back, the sums are too large.

Yet everyone seems to agree a break-up of the Eurozone is unthinkable, it will make the thirties depression seem like a walk in the park. When I say everyone, I'm talking of the top politicians and their financial advisors, no country dare have a referendum on the issue because ordinary people will vote for Armageddon, not having a clue what it means.

The German people have their finger on the 'nuclear' button, they could force their strange coalition into a referendum, and the masses won't vote to pass any more money to the lazy and corrupt people to the south of them.

Beaverstate

I think the Germans are as afraid as anyone.

agoreira

Barroso thinks he has all the answers, and it's mostly the fault of those detestable British! In the meantime, let's keep pumping money in, seems to be his answer. Not only more money, but they are moving the goalposts regarding the repayment terms.
http://blogs.telegraph.co.uk/news/da...ese-eurocrats/

steviedeluxe

Couldn't happen in Aggy's beloved UK, could it? Oh (remembers 375 billion of QE)

agoreira

From the Telegraph today, so at what point does a full bailout kick in? They've had two lots of money, two "partial" bailouts, so how bad does it have to get before it's considered a "full" bailout? Are they simply delaying the inevitable?

jackytoo

Whats this got to do with it Thought it was a discussion about the euro!

jackytoo

Next to happen the word "bailout" will be banned in Brussels. They could call it a grant, an adjustment or something Rajoy is really into the eurospeak. He has said "It is not a bailout" "Spains loan is a triumph for the Euro" "There will be no conditions to spains loan"...right

agoreira

Now you know why he's on "ignore". I thought of him the other day watching this.
http://www.lasexta.com/sextatv/salva...23/314413/1061
Watch from about minute 2.20, they are in the unemployement office in Madrid. They have 30-35 jobs max on their books, a look on the internet show 6,923 jobs available in Madrid. As the lady says, theirs are real jobs!

steviedeluxe

Your mate aggy (who is not an expat and states he never wants to be one) mentioned "blame the British" first. I personally blame the banking system and the expansion of credit, but if aggy's going to gloat over "pumping more money" let us remember that it's not just happening in one country.

cricketman

You're right, the Spanish "bailout" is basically what the British did with QE

The only difference between the British and the Spanish is that people wont lend at a sensible rate to the Spanish even though the economies - and books - are roughly in the same state

So the only answer is massive ECB QE - and give that newly printed money to the Southern economies

Will mean a euro will be worth less of course, but so what, it is still relatively strong against the pound and dollar

Luth

Spanish banks are to receive 30billion euro immediately. They are currently undergoing a thorough financial examination(hmmmm....some task) which will take until September before the size of the total bailout required can be calculated exactly. It has been stated that it is expected to be 100 billion euros. In the meantime a new bank is to be created to accommodate all the toxic debts of the major banks.
Maybe that is the bank to join to get a dream property at a "Toxic" price.
There is always a good deal to be had, even in the biggest recession, it is just finding it they say.
Yep, theory of QE is that you buy the bonds back when the market rises again whereas the bailout i believe is effectively a loan over 15 years at either 3% or 4%. Guess that will be a 3 then. I wonder if either mechanism will ever fulfill its aim?

jackytoo

Wonder what Spain will do about the 2.3 trillion private debt France seems to be doing ok. Investors were paying them to put their money in yesterday. UK isn't doing well and I think this rainy summer will have pushed it further into recession but whilst the borrowing rate is so low then investors must think the prospects are good...

steviedeluxe

Perhaps a more analytical view of the Spanish economy from Legal & General - of course just because they are involved in finance, doesn't make them right. Many things can happen in a year.



http://www.thecorner.eu/2012/07/rece...der-2008-lgim/

Dick Dasterdly

Seems to me that the Eurozone itself is Armageddon.

The sooner it's finished self destructing, the sooner some acceptable degree of normality will return.