Posted on 06/11/2012 11:59:56 AM PDT by Olog-hai
Euphoria over a lifeline of up to €100 billion ($125 billion) to rescue Spain's hurting banks morphed into a financial markets rout in a matter of hours Monday, as investors digested the still-undefined plan and became concerned the country may be unable to repay the new loans.
The rate on Spanish 10-year bonds—a measure of market trust in a country's ability to repay debt—rose to an alarmingly high yield of 6.47 percent at the close of trading after falling to 6 percent in the morning. And the benchmark IBEX-35 stock index closed down 0.5 percent after surging 6 percent in the morning.
Overshadowing Spain's acceptance over the weekend of a bailout for banks burdened by toxic property assets and loans are Greek elections next weekend and concerns that the anti-bailout left-wing party Syriza could become the largest party in parliament, putting the country's membership in the zone at risk.
Investors also zeroed in on Italy, sending its bond yields sharply higher amid worries it could be next in line for a bailout because of a deepening recession and increasing pressure on the administration of Premier Mario Monti. And Spain's economy is in terrible shape with no sign of improvement anytime soon. …
Spain's bond yield is worrisome because it is perilously close the 7 percent rate that is considered unsustainable … While Spain's bailout does not include the government, investors are worried that Spain might eventually be forced into such a situation.
The rescue for Spain's banks was portrayed by Spanish and European officials as a bid to contain Europe's widening recession and financial crisis that have hurt companies and investors around the world. Providing a financial lifeline to Spanish banks was designed to relieve anxiety on the economy. …
(Excerpt) Read more at hosted.ap.org ...
Still plenty of money to be made! Still lots of sheep to fleece! Lots of dangerous trades and hedges that can bring riches and if they don’t the ‘gubberment’ will take the loss!
What a world we live in when the corner three card Monte dealer is more honest than most of the ‘Too Big to Fail’ bank and investment houses. And the Monte deal who ‘scams’ a few hundred is a thousand times more likely to go to jail that the ‘banksters’ that are stealing millions.
Billions for Greece. Billions for Spain. Italy or Cyprus will be next. Where is the EU getting this money??
These Euro rescues used to rally/reprieve the markets for several weeks. Then, they began only lasting a single week. Then days. Now, with this one, only hours!
Seems like the inevitable brick wall is REALLY close at hand now.
Got a mirror?
Sha, la, la, la, la, la, live for today.....
Correct. We give it to them and they turn around and make “loans” to the countries whose national governments they want to abolish.
When this all comes crashing down the Eurocrats are going to envy Mussolini’s end. It will seem merciful by comparison.
These bailouts are futile. They can never restore the capital that has been squandered by three generations of deficit spending. The bailouts are weakening the remaining viable economies in Europe. Deficit spending and massive non sustainable debt lead to bankruptcy, poverty and misery. First Greece, now Spain, later Italy and then France. Things will get ugly. Unless the US rids itself of left wing lunatics in positions of power, our fate will not be much different. Walker’s victory was the most pivitol election thus far in the 21st century. The Democratic Party, the greatest internal threat to the well being of the American people, must be defeated.
Bailout money has a tendency to disappear, and once the bailout money is gone, it is gone forever. Smart people should never believe otherwise. Track record is all too clear. Someone could say GM. That bailout failed too. Of course one cannot tell the truth. The truth will make one think, ask questions, seek answers, and causes more memos to go out to those seeking control saying in the memos ... Them lemmings are disbelieving and refusing to move Forward. Get the whips!
Buy a “bond”, take a forced swap haircut later. What a deal!
“Billions for Greece. Billions for Spain. Italy or Cyprus will be next. Where is the EU getting this money??”
From the Germans, they are the only Europeans who still know how to work! Have you purchased a Greek or Spanish car lately? No, I wonder why. I can’t think of one thing the Greeks make, nor the Spanish either. Italy is next. The Northern part of the country has to support the Southern half where all the lazy Italians reside. People we know in Verona spit when they see a car with NA or SI license plates.
Ouzo?
Olives, both of them.
cheese
later
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