Spain To Bail Out Cajas, More Billions In Taxpayer-Funded Risk Transfer

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Wed, 01/19/2011 - 18:49 | 888627 slow_roast
slow_roast's picture

Clearly the Japanese are paying for this bailout which will shore up the banking sector in Spain, just in time for them to lend money to Japan which will explode if they don't get an injection of cash. 

Wed, 01/19/2011 - 19:05 | 888673 AUD
AUD's picture

No, the Spanish Cajas are 'paying' for it. They are offering themselves as collateral to the Spanish central bank, who will create deposits for the Cajas in the form of Euro's so the Cajas can 'pay' their creditors....

Wed, 01/19/2011 - 20:19 | 888827 cswjr
cswjr's picture

Indentured servitude -- cool!  Wonder if that extends to the C-suite execs?  If so, can we implement the same deal here?

Wed, 01/19/2011 - 20:48 | 888852 nmewn
nmewn's picture

"Indentured servitude..."  

At least here, in the SE of the US of A, I know a bunch of folks who ain't much on bearing the burden for others irresponsibilty...the Patriot Put ;-)

Wed, 01/19/2011 - 21:31 | 888932 AUD
AUD's picture

Sure, in the wonderful world of credit everything is possible.

Gold down in Euros overnight? it's not like the market currently gives a shit anyhow.

Thu, 01/20/2011 - 00:08 | 889220 PiratePiggy
PiratePiggy's picture

As they say over in the UK, "...and Bob's your Uncle"




As we sing in the states "I'm my own grandpa" (with music and diagram below)





Wed, 01/19/2011 - 18:50 | 888633 Ragnarok
Ragnarok's picture

This is priced in right?

Wed, 01/19/2011 - 18:56 | 888651 Cleanclog
Cleanclog's picture

It really isn't priced in.  Market pricing still believes Euro debt will work out in time without restructuring.  Not gonna happen.  And the restructuring will go beyond Europe.  Prices will go down down down.  But the timing is what we don't know.  

Wed, 01/19/2011 - 18:58 | 888655 Ragnarok
Ragnarok's picture


Wed, 01/19/2011 - 19:00 | 888660 Reese Bobby
Reese Bobby's picture


Wed, 01/19/2011 - 18:52 | 888638 SDRII
SDRII's picture

30-120B euro is the o/u -  a mere month of POMO

Wed, 01/19/2011 - 18:57 | 888645 etrader
etrader's picture

Must of been just a coincidence that the  IMF  was in Spain on Monday.... ;->

"The International Monetary Fund has sent a special unit to meet with the Bank of Spain, the Spanish Treasury and the nation’s largest banks to evaluate the country’s solvency, El Mundo reported, citing unidentified people familiar with the matter."

Wed, 01/19/2011 - 18:55 | 888650 Two Gun Tobe
Two Gun Tobe's picture

Just print some Euro's. If Ireland can do can Spain. Just dont

forget to let the European central bankers know, and its all good.

Wed, 01/19/2011 - 19:28 | 888734 Zeroexperience2010
Zeroexperience2010's picture


Wed, 01/19/2011 - 19:01 | 888662 Misean
Misean's picture

"As for the question where all this bailout money is coming from..."

Where all "money" comes from...thin air! Easy question. Where's a hard one?

Wed, 01/19/2011 - 19:11 | 888667 razorthin
razorthin's picture

how relevant does aapl look now, bichez?  look at those financials tank AH. lol!!  If there's any reason or justice left in this psycho world, we'll limit down again real soon.

Wed, 01/19/2011 - 19:05 | 888672 Reese Bobby
Reese Bobby's picture

No problem as long as the Spanish people are up for a deep 10 year austerity recession.  Is that so much to ask?

Wed, 01/19/2011 - 19:43 | 888769 Rainman
Rainman's picture

....damn, I just knew those marble floors in the Barcelona airport might be a little spendy.

Wed, 01/19/2011 - 23:38 | 889195 Hephasteus
Hephasteus's picture

Haha jokes on you. While we are starving to death and our bones are breaking from lack of calcium they will all be huddled on the floor at the airport licking away at the marble floor with beautiful healthy bones and teeth. Calcium carbonate.

Thu, 01/20/2011 - 06:08 | 889436 ciscokid
ciscokid's picture

Your quite right BCN airport is all marble,Catalunya

is the most indebted regional goverment in Spain.

They have to change the labour laws and be more productive

and less of the siasters and fiastas. 

Wed, 01/19/2011 - 19:49 | 888784 Star Warrior
Star Warrior's picture

They had the Party, now the Hangover!

Wed, 01/19/2011 - 19:11 | 888691 dwdollar
dwdollar's picture

Anything to kick reality a few months down the road.  Party on.

Wed, 01/19/2011 - 19:12 | 888693 Piranhanoia
Piranhanoia's picture

I don't think they are going to go for it in españa. Rather than a caja, "box", would they not feel un poco mas seguro si los bancos were called something more resembling a vault or at least a jail?  Boxes are being robbed in Spain now.  tighten up before they Ireland you.  

Wed, 01/19/2011 - 19:17 | 888706 HarryWanger
HarryWanger's picture

Futures are doing nothing with this news but are at least holding steady. This, coupled with the health care vote, could be a catalyst tomorrow to bring back a little. But I still think we have 3% more downside before feeling like jumping in again.

Wed, 01/19/2011 - 19:20 | 888717 razorthin
razorthin's picture

check xlf, harry.  you ain't doin nothin without the financials.  cratering real bad.

Wed, 01/19/2011 - 19:24 | 888726 HarryWanger
HarryWanger's picture

Remember in late November when everything rallied and the XLF was stuck in the lower 14's? Market did very well during that time frame.

Wed, 01/19/2011 - 19:29 | 888738 razorthin
razorthin's picture

true, but the fact that they had been oversold the entire month made me bullish then, anticipating a springboard lift.  this time, however, they are still very overbought and look like they could be leading us down.

Wed, 01/19/2011 - 19:43 | 888765 mynhair
mynhair's picture

 think I just seen Steve Jobs fueling up his iBoat.

It had writing on the back that said "Anywhere But America Or Bust"

FuturesPast on MW.

Was that boat in flames?

Viking funereal, bitchez!

Wed, 01/19/2011 - 20:07 | 888807 Caviar Emptor
Caviar Emptor's picture

He got out at the top :-)

Wed, 01/19/2011 - 19:49 | 888785 gwar5
gwar5's picture

Print money and give it to the banks. Raise taxes on the new Spanish economic slaves.

IMF and The Bernank will back-stop all of it and keep them on the plantation.  

Wed, 01/19/2011 - 19:53 | 888790 chump666
chump666's picture

Trillion + economy asking for a bailout...that's a global credit crunch scenario.  spain goes spreads will go lehman style, ECB/Germany are going to struggle with this.


Wed, 01/19/2011 - 20:09 | 888811 Rainman
Rainman's picture

Well, at least they get an A+ for hiding away this sick puppy for as long they did. Worry on.

Wed, 01/19/2011 - 20:09 | 888802 Caviar Emptor
Caviar Emptor's picture

A perfect illustration of Biflation hell: 

The entire real economy in a tailspin while input costs and cost of living go through the roof. 

Default is the only solution here. But remember that means the creditors must share the pain along with consumers and they are politically connected. 

US is just different by degree. At least most of our economy isn't based on tourism and retirement for people with a pale complexion. However don't think that our banks aren't interconnected with big Spanish banks (which are interconnected with the cajas). All in the same fraternity. 

Wed, 01/19/2011 - 22:37 | 889107 Canucklehead
Canucklehead's picture

Here is an interesting article about EU politics/tensions.

... some of France's nuclear missiles are aimed at Berlin...

Wed, 01/19/2011 - 23:04 | 889153 Buck Johnson
Buck Johnson's picture

Nobody wants the game to end, but it has to end.

Thu, 01/20/2011 - 06:16 | 889439 ciscokid
ciscokid's picture

They have gone "cold turkey" they need a fix.

Thu, 01/20/2011 - 00:58 | 889263 chump666
chump666's picture

i think the end game is being priced in...we are close now. 

somewhat of a perfect storm coming: an inflation energy/food crisis slamming into US/EU debt binge, China going into a rate panic mode.

Thu, 01/20/2011 - 04:33 | 889404 hugovanderbubble
hugovanderbubble's picture

Estamos quebrados


For ZH users,


Thanks to BAML and Sergio Gamez Report,



Thu, 01/20/2011 - 05:01 | 889416 Inthemix96
Inthemix96's picture

What are we to do though?  Where do we go from here?

Smile and wave boys, smile and wave

Thu, 01/20/2011 - 07:22 | 889469 Dabale arroz a ...
Dabale arroz a la zorra el abad's picture

Time to emigrate, like the old times... maybe to Titan, I think the shit from the fan won't reach there. Will Titanians eat gold?

Thu, 01/20/2011 - 09:30 | 889605 youngman
youngman's picture

very quiet today....its all Morgan Stanley....a little China dinner....human rights abuses....nothing about the economy or inflation or debt.....very very quiet....and now 404,000 new and sliver tanking on time.....all is good sheeple...all is good

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