Spanish Lending Rates Soar To Highest Since 2008

Tyler Durden's picture

Despite sovereign bond yields plumbing new record lows and the Prime Minister proclaiming (against Draghi's advice) that the nation has turned the corner and is out of the crisis; Spain's record unemployment and record loan delinquency is showing up in a major credit-creation-crushing way for small businesses. As Bloomberg's Jonathan Tyce reports, Spanish new business lending rates just experienced the largest 2-month surge in over a decade to their highest since 2008. At 4.04%, new business loans trade over 300bps above two-year sovereign debt (and are diverging) as the efforts of Europe's 'whatever it takes' central bank are being entirely wasted in terms of reaching the Keynesian growth-driving economy. We suspect this surge will once again raise talk of a rate-cut (and expose the impotence of the ECB's transmission mechanisms).



Chart: Bloomberg

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Cognitive Dissonance's picture

Looks like the beginnings of a massive heart attack. Dr. Yellen to the emergency room....stat.

<Moar of>

Headbanger's picture

There's this strange thing called "risk" that I've heard about...

LawsofPhysics's picture

Speaking of "transmission mechanisms", how much are the savers getting for allowing these fuckers to risk their savings?

Roll the motherfucking guillotines already.

Max Damage's picture

Savings? I don't know about the good old US of A but in the UK and I suspect Europe, you don't "save" in a bank. What you do is lend them your money at a shit interest rate and become a creditor that ranks below dog shit, when things go tits up.

Bank savings rates is the biggest lie out there to con the plebs

LawsofPhysics's picture

somewhat rhetorical question...

NoDebt's picture

I don't see why Europe's "transmission mechanisms" should be any more or less broken than our own.  We're all doing the same things to a greater (Japan) or lesser (Europe) extent.


BadKiTTy's picture

heart attack.....adrenaline shot......heart attack ...... adrenaline shot.....heart attack.....x n!

I keep thinking the next chest clasping event will be the last but no..... the corpse revives to gasp a few more mouthfuls of air.  

rtalcott's picture

LIVE SOON - Fran├žois Hollande press conference on economy and......

The Merovingian's picture

Yawn ... until rates reach double-digits, where they really should be, just like rates for every Sovereign including the US, the fat lady is only humming ... 

Cognitive Dissonance's picture

".....the fat lady is only humming ... "

I believe the politically correct term is "the obese lady is only humming". But I do hear she gives a great hum job. :-)

hugovanderbubble's picture

Mortgage Default Rate hits new record 15% but who cares....

Lumberjack's picture


Top 25 US Bank Introduces Boston To New Name With "Santander Community Day"


BOSTON, Oct. 18, 2013 /PRNewswire/ -- In celebration of Sovereign Bank becoming Santander, the Bank hosted "Santander Community Day" in Boston today, featuring a series of fun giveaways and activities as a public "thank you" to Boston area residents and visitors. Through partnerships with its corporate clients and beloved local institutions -- Boston Duck Tours, Dunkin' Donuts and Kickass Cupcakes -- Santander will deliver all-day surprises throughout the city to underscore its strong commitment to its customers.

The day was kicked off on Beacon Hill when Massachusetts Governor Deval Patrick presented Santander US president and CEO, Roman Blanco with a proclamation designating October 18, 2013, "Santander Community Day".



Santander is a spanish group.


And why does the Spanish based company, Iberdrola own so many utilities and power generation projects here?