Spanish Bad Loans Hit Record; Surge Most In A Year

Tyler Durden's picture

With Spanish sovereign bond yields hitting record lows - marginally above those of the US - one might be surprised to learn that unemployment is at record highs, suicide rates are at record highs, youth joblessness is at record highs, and now, to top it all off, Spanish bad loans are at record highs once again (at 13.6% of all loans). Of course, not deterred by the uncomfortable reality, Economy Minister Guindos is out in full propaganda mode:

  • *GUINDOS SAYS BAD LOANS RATIO SEEN MODERATING IN NEXT QTRS

However, given the 17.7% rise in the last 12 months - the most in a year - we are struggling to see signs of the turning point he is so confident of.

The data - Guidos argues - reflects "recognition of reality" in what seems like an admission that all the spin and hoopla about marginal improvements til now have been based on entirely unreal data...

 

 

Did Spanish banks kitchen sink it? We highly doubt it as unemployment levels strongly suggest the worst is yet to come.

 

Charts: Bloomberg

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y3maxx's picture

...Only Country safe from Europe, Asia, Africa, South America and Australia is...............

"Canada"

Western Canada in particular

natural resources up our Ying Yang with only 12.5 million citizens.

...Only question, Safe for how long before the USSA conquers our Country, in the name of peace of course.

hugovanderbubble's picture

Canadian Real Estate REITS are close to suffer the biggest top ever. Sell Canadian Reits

asteroids's picture

The average Canadian owns a LOT of money to the banks in ether mortgages or credit cards. Worse than Amerika 2007. This will not end well, even in Calgary.

TruthInSunshine's picture

And now we know. If they think Spain credit conditions are bad news, brace for impact for the follow-on news regarding PIIGS+France.

The German Bundesbank will give in to limitless, unsecured loans (until they can't) because PIIGS+France are literally in shambles.

There's absolutely no way to keep the EU cobbled together absent liquidation of German taxpayers, at this point.

Party on!

codecode's picture

It's the "skinsuits" fault

 

Oh wait, wrong country...

hugovanderbubble's picture

Debt Reprofiling = Default = Debt Haircuts coming = Covered Bonds Default = Sovereign and Subgovernment bonds default = End of Euro Zone 

ISDA MANIPULATION = CDS CHAOS Coming = TRIGGER = COUNTERPARTY RISK ON

NOTaREALmerican's picture

Re: Debt Reprofiling = Default = Debt Haircuts coming = Covered Bonds Default = Sovereign and Subgovernment bonds default = End of Euro Zone 

Commissioner Gordon, light the Bernanke light!!

PontifexMaximus's picture

Hyper bullish, watch for next week corp action in Vodafone, all British (and other) asset managers have to (they have no other choice) invest those funds. Where? Have a guess! So, forget about Spain. Follow the flow.

hugovanderbubble's picture

the flow is SELL TELEFONICA , Target 8,80 (Nomura dixit)

FieldingMellish's picture

Recovery is always just around the corner... always.

asteroids's picture

The only question is will Spain follow the same path as Greece, and who is next? Italy or France?

Mr Giggles's picture

A loan in Spain, goes mainly

down the drain.

TruthInSunshine's picture

All loans to Spain fall mainly on Germans.

pashley1411's picture

eh, same ole same old.    Any data that can be manipulated, is (soverign interest rates, unemployment rate, GNP, Libor ; R.I.P.), so the truth only peaks out around the edges.    (suicides, emigration, Gini).

So you either go with the flow, or stock up on sandbags and lead.  

NOTaREALmerican's picture

What Spain needs is a 600 ship navy to create lots of high paying unionized working class jobs.

Mr Giggles's picture

Hurarh for Douche bank. Frau M. must be wondering how many more

papered lies will turn up.

Uk banks also looking a bit squemish (Lots of over levered brit boomers

with under water homes.)

Did anyone realy believe the figures submited for membership of the EU?