megmet

Well we all knew it would eventually despite all the denials!

http://www.cadenaser.com/economia/ar...srcsreco_6/Tes

lokalokaloka

Now we wait?....

Domino

however, it seems to have been well received

http://www.bbc.co.uk/news/world-europe-18384291

Dick Dasterdly

Yes, but the thing we have been told to be sure to remember is that "It's Not a bail out, it is a loan."
It's all about pride and not taking zee orders from Merkel.
Anyone see it ever getting paid back ?
Anyone explain the difference, as for me I think its simply more dosh down the Swanee either way ?

At least I can sleep easier in my bed knowing that my few euros still in Spanish banks is safe,..........well for a month or two at least.

rugbymatt

Why ransom? What would the alternative have been? Let them fail?

Lynn R

I haven't read through all the comments on the article, but many of them are along the lines of "it's wrong to spend all this money on rescuing the banks when so many people are without work and families living in poverty. This will do nothing to increase the number of jobs and the economy will not grow because people have no money to spend".

I can well understand the Spanish people whose lives are being ruined by this crisis feeling bitter, especially the young who feel they have no prospects.

teuchterpete

So whats different to the UK. We have not been cap in hand .....Yet. The bankers have made a mess of things through their greed. They have to borrow money at high interest rates to make up their short fall, and as a way of making up the loss, they are charging customers more. We pay through our taxes, we pay to the bank in charges etc ( in the UK monthly charges are becomming more and more) we pay to change money from £GB to Euros. They mess up we pay!
Nuff said!

rugbymatt

The debts are different, Spain itself owes very little.

teuchterpete

Point taken. I'm not a financier, far from it . However rightly or wrongly, the perception ( or should it be reality) is that whoever screws up..... We pay, either in higher taxes, lower savings rates, or through the misery of unemployment.
Pete

Beaverstate

By the press. Lets see what the money people say monday morn

rugbymatt

To be fair to Spain they had run a very good economy for years, never needing to borrow and get into debt and never going into the red but its over dependancy to the house building sector meant that only one thing could ever happen when the building sector inevitably failed.

Beaverstate

Totally agree, very unfortunate to see an otherwise fiscally responsible government caught up in a mess not many saw coming.(Just the thousands who said nothing and lost trillions)

jackytoo

You can't just blame the spanish banks. What finally floored Bankia (according to one financial paper) was that it borrowed billions from the ECB low interest fund (the fund that was supposed to patch-up the Euro forever!) and promptly used the cash to buy up Spanish Government bonds. So a bit of collusion there with the Government. I think the 40 billion or so will be the tip of the iceburg..some say it will be 300 billion+.

When is a bailout not a bailout?...when it's a Spanish bailout

megmet

It's a pity we can't be like the UK, instead of a bailout just print lots of money.

Countryboy1

I think the main difference IMO compared with the UK is that the state some banks (not all) in the UK got into was down to a mixture of greed and incompetence whereas in Spain, you can add cronyism, institutional corruption and political interference.