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:


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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Tue, 02/18/2014 - 15:43 | 4449280 y3maxx
y3maxx's picture

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


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.

Tue, 02/18/2014 - 15:49 | 4449300 hugovanderbubble
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Canadian Real Estate REITS are close to suffer the biggest top ever. Sell Canadian Reits

Tue, 02/18/2014 - 16:04 | 4449356 asteroids
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.

Tue, 02/18/2014 - 16:13 | 4449410 slotmouth
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Tue, 02/18/2014 - 15:54 | 4449287 TruthInSunshine
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!

Tue, 02/18/2014 - 15:45 | 4449288 codecode
codecode's picture

It's the "skinsuits" fault


Oh wait, wrong country...

Tue, 02/18/2014 - 15:50 | 4449292 hugovanderbubble
hugovanderbubble's picture

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


Tue, 02/18/2014 - 16:30 | 4449489 NOTaREALmerican
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!!

Tue, 02/18/2014 - 15:52 | 4449310 PontifexMaximus
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.

Tue, 02/18/2014 - 15:55 | 4449315 hugovanderbubble
hugovanderbubble's picture

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

Tue, 02/18/2014 - 16:00 | 4449339 FieldingMellish
FieldingMellish's picture

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

Tue, 02/18/2014 - 16:06 | 4449362 asteroids
asteroids's picture

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

Tue, 02/18/2014 - 16:08 | 4449375 PontifexMaximus
PontifexMaximus's picture

Ask SuperFranfurtMario!

Tue, 02/18/2014 - 16:07 | 4449369 Mr Giggles
Mr Giggles's picture

A loan in Spain, goes mainly

down the drain.

Tue, 02/18/2014 - 16:09 | 4449378 TruthInSunshine
TruthInSunshine's picture

All loans to Spain fall mainly on Germans.

Tue, 02/18/2014 - 16:27 | 4449475 PontifexMaximus
PontifexMaximus's picture

That's why they won't default!

Tue, 02/18/2014 - 16:21 | 4449436 pashley1411
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.  

Tue, 02/18/2014 - 16:23 | 4449457 NOTaREALmerican
NOTaREALmerican's picture

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

Tue, 02/18/2014 - 16:25 | 4449465 Mr Giggles
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?

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