Here Come The Denials: "There Is No €250 Billion Spanish Bail Out Package"

As we surmised yesterday, when we pointed out that the IMF's Strauss-Khan is now officially getting involved in Spain's bailout, that the next step would be flat out denials that Spain is going to get a rescue package, sure enough Market News reports that "A European Commission spokesman today “firmly” denied a Spanish press report that Spain was in negotiations with the European Union, the International Monetary Fund and the U.S. Treasury for a credit line of up to E250 billion." Of course, this means that Spain is about to spring a half a trillion rescue request. The rumor of the latest Spanish rescue package appeared in Spanish business journal El Economista which reported that officials from the EU, the IMF and the US Treasury were in talks to provide Spain with a €250 billion liquidity lifeline. "The publication, citing sources close to the process, ran the headline of the story along just above a tease to an inside editorial urging Spanish Prime Minister Jose Luis Rodriguez Zapatero to resign." Subtle. And of course, here comes the IMF itself denying the self-evident reality: "“I have a very simple line for you: There is no truth to these rumors,” Simonetta Nardin, an IMF spokesperson told Market News International." Additionally, the IMF made it all too clear that Strauss-Khan is in Europe purely for sightseeing purposes: "He is in Europe this week, and is taking this opportunity to discuss global economic developments with the Prime Minister, and to consult with him on developments in Spain, including the government’s economic policies and reforms." Not to mention bail outs. One thing the ECB was perfectly happy not to comment on, was the question whether Trichet is pushing European countries to express their support for Spain. In truth, they don't have to say anything - just buy up their quota of Spanish bonds at the next "successful" auction, with the ECB gobbling up the rest, and somehow make this seem EUR positive. Now just throw in a few automatic lies from Tim Geithner, and the short EURUSD trade will be back firmly on the table.

Comments

[Quintus]

There is no spoon......

[RockyRacoon]

And the hits keep coming!

http://www.youtube.com/watch?v=dzm8kTIj_0M

No spoon, indeed!

[ZackAttack]

This is not the bailout you are looking for.

[Cursive]

This is not my beautiful house!

http://www.youtube.com/watch?v=I1wg1DNHbNU

[StychoKiller]

[quote]Additionally, the IMF made it all too clear that Strauss-Khan is in Europe purely for sightseeing purposes:...[/quote]

Yeah, we want to see if anyone has any MONEY!

[Sqworl]

Can you spell Peseta?

[rawsienna]

It is all the Bush Administrations fault. 

[RockyRacoon]

Dubya didn't get there by military coup.  He was elected.  So, whose fault is it really?
And we have the best Congress money can buy.  Who put 'em there?

[Mongo]

This is like before the moment of a dhiarrhea attack. You live in denial until your pants are full of it! Then its just downhill into to shower... in the EUs case it will be a shower with nails and razorblades.

[Wynn]

Viva la bailout!

[Internet Tough Guy]

Dominique Whatever = sargeant schultz. 'I zee nothing. NOOOOTHHHHHINGGG'

[LeBalance]

Semi-OT, but not really:

"First they ignore you, (create the problem) (small problem) >> Anti-Safe BP

then they ridicule you, (ignore the problem) (pour fuel on the problem) >> Leak is Small

then they fight you, (deny the problem) (add nuclear fuel to the problem) >> Measures that don't work, refuse help from qualified personnel, obstruct coverage.

then you win." (steal from you to pay for the problem) (make their problem yours) >> Its a big leak!  We have to Nuke It!  Say GOM to the Shore!

- Mahatma Gandhi

We have *won* ownership of the problem.  That's a win?

What we need to do is evaluate the service providers and only patronize those whose services are what we need.

[MarketFox]

This is getting boring...

Each democratic country, and even "semi-democratic" country has shown their inherent economic weaknesses.

Simply stated, if one gives a child a credit card, THEY WILL max it out.

The solution is simple. Take away the credit card.

Now one can view the "debt from the credit card" similar to the oil spill in the gulf. Yes it has already happened, and debt is just as brutal as oil is in the marsh estuaries, killing off the birth of the next generation.

Just like oil, the debt must be cleaned up, before the economy can rise from the ashes.

Hopefully the children's children will respect their parents mistakes and not repeat them.

[Ethics Gradient]

Or you could blow up the credit card companies offices like in a film I once saw.

[StychoKiller]

"Neither a borrower nor a lender be." -- Shakespeare

[mephisto]

"A European Commission spokesman today “firmly” denied a Spanish press report that Spain was in negotiations with the European Union, the International Monetary Fund and the U.S. Treasury for a credit line of up to E250 billion."

...because the real number is around E850 Bn

[Cursive]

+1

[williambanzai7]

GEITHNER CONTAGION (REPOST):

http://williambanzai7.blogspot.com/2010/06/geithner-contagion.html

[Shoegazer]

Thanks Timmy!  Nothing like broke coutries bailing out other broke countries.  Good thing we can print money so we don't have to worry about silly things like the bond market.  How much longer is this ponzi scheme going to last?  I'm guessing late next year everything will finally start to fall apart.

[Paper CRUSHer]

Strauss-Khan the "Gringo" is going"all in"...again.The dumb Spaniards made their bad move by going "all in" back in 2007.Recall this article from the past.Here's the last paragraph:

The irony is that gold has its greatest value after a crisis has exploded, not just ahead of it.   Will we see more sales of Spanish gold?   These are not sales to adjust reserves, as has been the stated reason why the Eurozone banks are selling gold, they are because Spain is headed to difficult days.  Let?s see how much more will be sold?

http://www.financialsense.com/editorials/phillips/2007/0523.html

[sumo]

From Roubini's company RGE:

Reports of Possible EU Bailout Package: How Severe Are Spanish Banks' Funding Issues?

• Due to Spanish banks' difficulty financing themselves in the wholesale markets, the EU Council is preparing a rescue package for Spain to be discussed on June 17-18, Frankfurter Allgemeine reported on June 14. Eurointelligence cites Frankfurter Allgemeine saying that an inter-bank market freeze last week—which showed that markets had lost confidence in the Spanish banking sector—had led EU officials to expedite discussions of a bailout for Spain, according to unnamed sources in Berlin. Frankfurter Allgemeine "also said neither the European Commission nor the ECB excluded an aid package. The paper quoted Spanish officials as denying that they are about to ask for EU aid," Eurointelligence reported.

[sumo]

From Eurointelligence:

http://www.eurointelligence.com/index.php?id=581&tx_ttnews[tt_news]=2824&tx_ttnews[backPid]=901&cHash=1c9613ac32

European Commission wants Spain to cut even more

Considering that the latest financial crisis in Spain is triggered by uncertainty over the economic impact of the announced austerity programme, the European Commission now wants the Spanish government to do even more. On top of the €11bn cuts already announce, Brussels wants the Zapatero government to nail down another €8bn to achieve the total structural adjustment of 1.75% next year. Of those, €5bn will comes from the central state, and another €3bn from the regions. The goal is to reduce the deficit to 6% in 2011. El Pais reports that of the €11bn specified so far, roughly over half came from the central government through the reduction in wages, while the rest came from the region which are already raising taxes. The paper quotes finance minister Elena Salgado as saying the purpose was to regain the confidence of the markets. (We think the up-front austerity programmes are the reasons the market have lost the confidence.) The European Commission has also asked Spain to implement labour market and pension reforms.

[Amsterdammer]

If we are reading from the same newspaper, the

extra-adjustment amounts to 19 billion euros,

1.75% from GDP, to get the deficit down to 6%,

that is about the size of the yearly adjustment in

Germany, 45 millions compared to 80 million and

20% unemployed on one side

[Temporalist]

Classic denial:

"Look...it wasn't my fault I swear to god!"

http://www.youtube.com/watch?v=9TuLBa-rgBk&feature=related

[Amsterdammer]

I agree that the rumorology: the UE is requesting

further adjustment from Spain, 1.75% of GDP

in 2011, 19 billion euros, this is the scale of the

yearly adjustment in Germany...Neither the IMF

nor the UE are realistic in their targets ( see the

Greece case ). So goes Simon Johnson' doom-loop:

growth perspective further revised, another downgrade

[Hephasteus]

Maybe the IMF was just selling them some gold or drugs or weapons systems.

[M.B. Drapier]

European Commission president Barroso was denying the €250bn report on Monday, but he didn't sound entirely reassuring for all that.