Is the EC pushing Spain towards a bailout?

[DCon]

Spanish Bond Yields back at 7%

What goes down, must shoot right back up. In this case we are talking about Spanish bond yields of course, which have yoyoed from a record 7.3% two weeks ago, back down to 6.3% last week, and right back up over 7% as of this morning. While the hope last week was that since the ECB is expanding its collateral it means an LTRO3 is on the way, the market promptly realized (even before LTRO3 was launched), that such a step means that Europe has run out of actual assets, and at this point is merely diluting the taxpayer collateral base. The result is that Spain is right back in purgatory where talk is cheap and unless Europe comes up with something concrete, purgatory will promptly be upgraded to the 8th circle of hell.

http://www.zerohedge.com/news/spain-back-over-7

[PaddyJoe]

So no direct funding for Spanish banks this year, according to an interview given to El País by German Finance Minister Wolfgang Schauble. A lot could happen in the next six months

[PaddyJoe]

No rush anytime soon on whatever that agreement was that Monti and Rajoy and Hollande forced through a couple of weeks back

AFP - The eurozone is unlikely to set up its planned banking supervisory body this year as hoped, German Finance Minister Wolfgang Schaeuble said in comments published Sunday.
His comments in an interview with Spanish newspaper El Pais raised pressure on Spain, which is waiting to finalise loans from its eurozone partners to secure its troubled banking sector

http://www.france24.com/en/20120708-...medium=twitter

[Ephilant]

What is hitting that fan?

Without expanding on it (so far), Mariano Ragoy announced that Spain will take "urgent and important new measures" to "ensure financial stability" in the country. Some of these measures will be taken immediately, others in the near future.

[Ephilant]

You do wonder what planet these people live on, or is it us on a different planet and not knowing about it?

The [Spanish] government intends to offer Spanish tax evaders more flexibility in its amnesty program after a group of lawyers and financial consultants representing the nation's wealthy families complained that the original terms were not sufficiently generous, according to a document prepared by the Treasury.

full article

[DCon]

You do wonder what planet these people live on, or is it us on a different planet and not knowing about it?


full article

Just like most other Nations, the Wealthiest Families have too much influence on the alleged governments

[DCon]

Spanish Bond Yields back at 7%





http://www.zerohedge.com/news/spain-back-over-7

7.07% this AM

[DCon]

Poor Spain is getting a bad bank. Not known if it will be a NAMA or just one existing bank designated the $hitheap

Spanish govt source: Memorandum of understanding with EU for Spanish bank rescue to be signed on Monday

Conditons will include a single ‘bad’ bank and 9% core capital ration for entire banking sector
Terms of banking aid to be signed on July20 and may include 15yr loans at 3-4%

http://www.forexlive.com/blog/2012/0...ned-on-monday/

[DCon]

Spanish reforms

VAT to rise to 21% from 18%
Increase in environment tax
Payment for new jobless cut to 50% of salary from 6 months
May revise installments on company tax
Tariff deficit to be eliminated
Power debt to be split between consumers, companies
New tax system to be used to eliminate tariff debt
To scrap rebate for homebuyers in 2013
Budget measures worth 65 bln euros over 2 years

http://www.forexlive.com/blog/2012/0...increases-vat/

[ang]

Police fire rubber bullets, clash with miners protesting in Madrid -

http://www.rt.com/news/spanish-madrid-coal-workers-918/

[Count Bobulescu]

Spain will be forced to give up most of its control over its banks. “Spain will be forced to give up most of the control over its banks to European institutions–and will be required to impose losses on local investors–in return for a bailout of as much as EUR100 billion ($123 billion), according to the draft agreement accompanying the rescue…Banks won’t get taxpayer funds until they have come up with a burden-sharing arrangement with investors. According to the draft document, those investors include not only equity holders, but also owners of hybrid capital and subordinated debt. The idea behind this exercise, for which Spain still has to create a legal basis, is to limit the amount of taxpayer-funded bailout money that has to be pumped into the banks. But in the case of Spain, such arrangements may still hit ordinary citizens directly, as hundreds of thousands of them bought preferred shares in local banks.”

Matina Stevis and Gabrielle Steinhauser in The Wall Street Journal.

[PaddyJoe]

Loads of spontaneous protests today in the major cities as public servants including off duty police and firemen blockaded streets to demonstrate against the pay cuts announced yesterday.
Meanwhile local governments in Andalucia, The Canaries, Catalonia and Austurias have voted against the new lower limits on local government deficits imposed by Madrid.
This is going to end very badly.

[C. Flower]

Loads of spontaneous protests today in the major cities as public servants including off duty police and firemen blockaded streets to demonstrate against the pay cuts announced yesterday.
Meanwhile local governments in Andalucia, The Canaries, Catalonia and Austurias have voted against the new lower limits on local government deficits imposed by Madrid.
This is going to end very badly.

There simply has to be an alternative solution. All these protests will go nowhere unless we offer another way of solving this.

[morticia]

The only solution involves printing money and or debt forgiveness. The Germans won't wear it. Immovable object meets irresistible force. It will be interesting to see how this one ends. But protesting in non German locations will have very little effect. People need to protest in a way that hits home in Europe North-Central. Boycotts of goods, movements of protesters to Berlin, Frankfurt, the Hague and Helsinki???

[Ephilant]

Rajoy wields the ax, and does it well. Probably will get a serious pat on the head from Merkel and Co. Meanwhile, his party colleague Andrea Fabra landed herself in hot water, and deservedly so. After Rajoy announced the savage cuts, once again hitting the poorest in society, she was clearlt heard shouting about the measures inflicted on the unemployed:

que se jodan

. It translates into something like "**** 'M ANYWAY"
Sometimes the elite does indeed drop the mask...

http://www.youtube.com/watch?feature...&v=ddjQ12-zHF8