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4 More Spanish Savings Banks Reported To Be "Merging" As Spanish Economy Unravels
And just when the bulls were hoping for a bounce, expansion.com reports that four new Spanish savings banks are considering a "cold fusion" which is another name for future bailout of one instead of four. The four banks are CajaMurcia, CajaGranada, Sa Nostra, Caixa Penedes and their combined assets amount to over €100 billion. As we expected, this weekend's bailout of Cajasur was Spain's equivalent to the New Century Financial blow up tipping out. Look for the unwind to accelerate now.
From expansion.com
CajaMurcia, CajaGranada, Sa Nostra, Caixa Penedes studying cold fusion
The four boxes alienated from the discussions with Caja Cantabria, Extremadura Caja Cajastur and now pose a cold junction. Those who were potential parteners of which now form the SIP by the CAM study the establishment of an Integrated System of Protection.The union of these four entities could become the fourth or fifth volume of business entity, with over 100,000 million euros, or the sixth or seventh volume of active entity, with about 80,000 million.
It is still early to say an alliance between these four boxes unmarried, and some of them as Caja Granada prefer to remained silent. Only states, told Europa Press that talks with other entities in order to achieve "the best possible strategic alliance."
It has also targeted the "limitations and conditions as the Granada box keeps tackling talks with other boxes, such as" maintaining the brand, the absolute loyalty to the land and respect for staff. "
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About as stable as cardboard 'boxes'
http://www.youtube.com/watch?v=Ik0yz5Jo4Os
This clip epitomizes the smoke and mirrors that is not just the U.S. stock market but global finance.
Has everyone seen this Australian clip?
http://www.youtube.com/watch?v=5D0VhS8qXT0
Hilarious.
Expect search term "depression" to trend up in the google trends in coming weeks.
I had to laugh at the recent yahoo top search terms at the end of last week it was a real head scratcher.
It was literred with random celebritis and right smack in the middle was "Short Selling"
It will be interesting to see the tranformation of attention from Lindsay Lohan to Depression and Survival. How fat/stupid have people become? Just go to an airport and see the amount of overweight people reading People/US/OK/etc., sipping on bottled water and snacking on cheetos. A wake up call is coming...and I can't say it is not unwelcomed.
They didn't listen to Timmay and wait for Friday. Probably the situation was so bad they couldn't. Spain remains one of the powder kegs in Europe with a large number of unemployed youth and a tourist/ foreign beach bum economy.
Rule of thumb going forward through the crisis: Follow The Shopping.
The entire global economy since the 1980s was based on one stupid principle: Shopping and the provision for shopping. (Sounds crazy, right? It is!) When cheap, recklessly leveraged credit for shopping dries up and exposes just how broke the average citizen really is, shopping suffers. And that, friends, is like kicking the crutch out from under an amputee. Everything deflates (except what still inflates, but that's another story)
Caviar,
Yeap, their Unemployment rate is actually worse than ours(is it possible?), 22%....................
Is this where we sing, "All they are is another Brick in the Wall?"
@Dos: They'll be singing in the streets pretty soon.....
Or maybe their unemployment number isn't as manipulated as yours ;-) Shadowstats says the real US unemployment is 22% .
Yes, I'm quite certain Spain is completely free from corruption.
Yes, I heard outlawing it definitely killed it.
The dirtiest words of all: New Century. Yes, indeed, this is one brave New Century....
Is there anywhere one can find a graph plotting a time series of bank failure frequency globally? It would be an interesting chart.
looks like that EU bailout arrived just in time for Spain. Thank you Germany :-0
JIT - the sign of an efficient economy.
Trying to read this post, it looks like the English language is being shorted. "WTF" is heading higher on big volume.
I have been following the Spanish situation and posted a link to the most recent notayesmanseconomics web blog article on her yesterday.Now seeing the news above I am reminded of part of his article.
"Whilst Cajasur in itself is not particularly significant the principles behind it are. For example if the Spanish press is accurate and the total losses on its loan book do approach 2 billion Euros then as its capital was only 229 million Euros a few concerned eyes might turn to other cajas and wonder what the real state of play is. So there is the fear that provisions in the caja sector as a whole will have to rise and one cannot avoid the feeling that the cajas will be less likely to loan money going forwards probably just at the time the Spanish economy most needs finance."
Spain is in difficult circumstances and I hope that the rest of his article saying that she has references to what Japan did in the early 1990s does not come true for her.
El Pais had a lengthy article yesterday:
Cajasur belongs to the Church, is losing 40 millions a
month, has 14 billion in deposits,has been meant
to merge with Unicaja for months and its executive
board refused the merger. The Spanish government
will inject 523 million euros in capital, the bank
having lost 596 million euros last year, and has
bad loans booked at 8,47%. Sheila Bair would love to
have a case like this, save for the fact that the
Caja needs to find a buyer
As for the "cold fusions"they were already under way.
Imho, it is the IMF's 'concern'that sparkled the
'market worries'.
As for the stress tests, expect the Ponzi eventually
to come out on the side of the French or German
banks; both W.Münchau and A.Pierce-Ritchard
have caught with their memory of a BAFIN worst case
scenario of the German Landesbanken having to write
off 800 billions euros in bad loans-a third of Germany's GDP
El Pais had a lengthy article yesterday:
Cajasur belongs to the Church, is losing 40 millions a
month, has 14 billion in deposits,has been meant
to merge with Unicaja for months and its executive
board refused the merger. The Spanish government
will inject 523 million euros in capital, the bank
having lost 596 million euros last year, and has
bad loans booked at 8,47%. Sheila Bair would love to
have a case like this, save for the fact that the
Caja needs to find a buyer
As for the "cold fusions"they were already under way.
Imho, it is the IMF's 'concern'that sparkled the
'market worries'.
As for the stress tests, expect the Ponzi eventually
to come out on the side of the French or German
banks; both W.Münchau and A.Pierce-Ritchard
have caught with their memory of a BAFIN worst case
scenario of the German Landesbanken having to write
off 800 billions euros in bad loans-a third of Germany's GDP
Since the 'Too Big To Fail' thingie worked so well in the USSA, I guess banksters all over the world will be merging. [insert appropriate non-word vocalization of disgust here]
It sounds marvelous in Spanish: "Demasiado grande fallar."
I thought the problems in subprime, I mean Greece weren't gonna spread.
nobody likes the clawback idea?
or what about fraudulent conveyance?
I need some help spinning this as bullish, can anyone help me think of anything? I was thinking something like: "Fewer banks to complicate financial market make trading simpler in europe." or "fewer banks result in smaller carbon footprint" or "Spain: Compared to Vegas, the prostitutes are almost free! "
Weren't the austerity measures going to make everything in the Eurozone hunky-dory?
"We are the Borg. Lower your shields and surrender your ships. We will add your biological and technological distinctiveness to our own. Your culture will adapt to service us. Resistance is futile."
+10
Weren't the austerity measures going to make everything in the Eurozone hunky-dory?
Nuff said:
Someone made a killing on these. Spain highlighted due to the circumstances surrounding its banks, Norway; well because its just odd to see it there and Russia as a reference point to as why GAZPROM widened, and Ireland just to show who is next. Portugal is, oddly, absent from 12:30 data update, but if it shows up by the end of the day; well put it in the same basket as Ireland.
The 64 trillion question is: Who's the jackass that's underwritten the most of these puppies with no collateral for payout?
You, by which I mean AIG
16:30 [GMT] Update:
CDX North America IG , Series 14 1YR 2YR 3YR 5YR 7YR 10YR Fair Value 60.20 79.73 92.67 123.78 129.59 137.94 Market Spread 124.51 Skew +0.73 Month To Date +20.68 +25.11 +26.59 +31.07 +27.86 +25.58
CDX North America HY , Series 14 1YR 2YR 3YR 5YR 7YR 10YR Fair Value 315.81 (101.95) 419.96 (101.58) 495.58 (100.12) 620.99 (94.96) 607.07 (94.45) 596.35 (93.90) Market Spread 670.44 (93.00) Skew +49.46 Month To Date +112.75 +134.48 +145.20 +167.06 +148.64 +139.49
HY and IG both widen significantly. It looks like the derivatives market is once again the main indicator of things to come. Monitor China more closely in the coming days; since if the spread begins to widen on a daily basis it could mean Chinese Banks are buying on the open market to protect themselves and would also mean the bubble there has burst. HSI imploded this night and Nikkei followed the same path. Things are not just HTF in Europe; China is to.
Investment Grade Lagging Movers Symbol Bond Price Change KMG.GN 102.96 -6.62 AOL.GG 109.00 -5.58 SPG.JU 105.00 -5.13 VZ.NG 107.77 -4.68 AOL.HL 101.97 -4.56 CS.LH 115.08 -4.45 WYE.GP 109.68 -4.37 AEP.JV 106.82 -3.62 SLM.LV 68.06 -3.39 BAC.GRH 95.73 -3.28 View Investment Grade Index Membership List High Yield Lagging Movers Symbol Bond Price Change CTB.GH 53.50 -21.50 F.GV 91.73 -5.15 ZION.GL 92.62 -4.88 F.GD 100.57 -4.43 FFRX.GF 96.96 -4.27 PKOH.GD 90.79 -4.21 GP.GT 95.05 -3.96 CAR.GE 96.51 -3.49 MBI.GF 54.47 -3.30 ALC.GD 98.65 -3.23 View High Yield Index Membership List
Creating a couple of TBTF entities for the Spanish govt to bailout...wait I thought they were already out of money?
Spain is unravelling? News to me. Sounds like you guys are going on a fishing expedition.
BUY THE DIP!!!
http://www.youtube.com/watch?v=cppY-n1i79w