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Spanish Bad Loans Re-Accelerate To New Record High
Amid the Spanish FinMin's "concerns about the pace of the increase" in government debt, and PM Rajoy's confidence that the nation would exit the eurozone-fueled banking bailout by January, bad loans in the still disastrously-troubled nations have re-accelerated to an all-time record high of 12.68% of total loans. Mostly linked to the collapsed property sector, bad loans climbed by 6.9 billion euros from the previous month to an unprecedented 187.8 billion euros ($254 billion) in September. Having almost completed the drawdown of its 41 billion bailout - and with the situation fundamentally worse than ever (e.g. record high unemployment), Spanish bond spreads have collapsed to 250bps - their lowest in 29 months.
Chart: Bloomberg
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This is clearly bullish somehow.
Maybe Bitcoins is linked to it?
I don't quite understand the logic behind it, but based on my experience from 2009 till now I'd say Spanish anything is a strong buy.
Today I even heard (unconfirmed) rumors that Spain-mined Bitcoins are available for less than US$200/bitcoin.
It's time to buy! Brave investors will be handsomely rewarded!
The remaining spanish buy in my portfolio are the hookers.
You shall have your pick of the European litter soon enough. All at rock bottom prices!
untill than, you'll have to settle with the flood of teenage hookers in Vegas...
Thus, we should expect a new attack quite soon against the spreads of Spain and Italy, forcing these countries to turn to ECB permanently as the exclusive source of funding, which means that they will adopt new austerity measures and further dismantling of the social state and labor rights, as required by the banks and multinational cartels and as it happens again and again in Greece.
http://failedevolution.blogspot.gr/2012/09/lea-jacta-est-by-emperor-drag...
Another example of the Twilight Zone. More reason to perhaps take bitcoin seriously. Even by the standards established in the last six years it is just astonishing how far things have drifted into the Twilight Zone in the last 6-9 months.
its only a "bad loan" when you actually have to pay it off
its just a game - its only a game
at least they are realizing the problem....we just print money to rescue the crooks!
the crooks print money for themselves to rescue & enrich themselves - same as it ever was
Better than breaking records at the special olympics I guess.
The Spanish people need to repudiate all that debt and get their criminal class of their .001% out of their country.
As long as there are people on the planet with more than 200 million dollars the future of everyone's existence is not likely.
This must be papered over or the public will panic, just like Schiff predicted! What number under $10,000 shall we choose to sell all of our gold today? What? We have none left? Sell some futures 12 months out. Surely we will have some next year!
Spain is an absolute total basket case beyond any sort of redemption except through total collapse. The central planners know this are in the process of planning the rape of all Spanish assets before dumping Spain in the bin, then allow Spain its own chaos and revolution.
Likewise Greece.
The leaders of these countries will happily betray and sell them out, to make their own pockets fat.
looks like silver price vs demande
The funny thing is, Spain used their bad bank SAREB to dump a whole load of bad debt into, so the numbers looked like an improvement a year ago. To no avail, the numbers keep growing and growing. Probably no bad bank big enough to hide that much in NPLs.
There are 3.4 million empty homes currently in Spain - you know, in those ghost cities throughout spain, and which are now owned by Spanish banks for which the Spanish taxpayer is ultimately on the hook for?
http://www.spanishpropertyinsi...
The average price of a home in Spain is about $345K
http://prices.kyero.com/
Accordingly, simple math tells us that this is a $1.2 Trillion black hole in the liabilities of largely Spanish banks.
Does Espana have a spare $1.2 Trillion to cover that?
Of note, this amount is practically equivalent to the entire Gross Domestic Product of Spain itself.
So I should be long Santander, or is it Dexia, I forget...
Its really amazing that facts like this are now meaningless....no one invests on this information anymore..not when there is all the printing going on...investors know now that if the banks need a bailout...they will get one ECB or not...they will change the rules.....I did not think I would ever see the world economy being taken over by the central banks like they have done now....the money is just pouring out....but its just going to stock buybacks or IPO´s....not to the street and the little guy...