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'Black Friday' Blame-Game Escalates As Spain Is Out Of Money In 40 Days

Tyler Durden's picture




 

With Valencia bust, Spanish bonds at all-time record spreads to bunds, and yields at euro-era record highs, Spain's access to public markets for more debt is as good as closed. What is most concerning however, as FAZ reports, is that "the money will last [only] until September", and "Spain has no 'Plan B". Yesterday's market meltdown - especially at the front-end of the Spanish curve - is now being dubbed 'Black Friday' and the desperation is clear among the Spanish elite. Jose Manuel Garcia-Margallo (JMGM) attacked the ECB for their inaction in the SMP (bond-buying program) as they do "nothing to stop the fire of the [Spanish] government debt" and when asked how he saw the future of the European Union, he replied that it could "not go on much longer." The riots protest rallies continue to gather pace as Black Friday saw the gravely concerned union-leaders (facing worrying austerity) calling for a second general strike (yeah - that will help) as they warn of a 'hot autumn'. It appears Spain has skipped 'worse' and gone from bad to worst as they work "to ensure that financial liabilities do not poison the national debt" - a little late we hesitate to point out.

Franfurter Allgemeine: Now Burns Spain

(Via Google Translate)

Spain has no "Plan B" more. The money will last until September. Then you have to spend the Treasury after a break in August and again fresh government bonds. However, if the interest and the risk premium on the record highs of the past "Black Friday" hold, is the fourth largest economy in the Euro zone - to Greece, Ireland and Portugal - the fourth rescue candidate.

 

How much has shaken the unrelenting storm in financial markets and alarmed the country's government can be seen in an almost desperate sounding aggressive opinion of the Spanish foreign minister. At a conference with other European leaders in Palma de Mallorca attacked José Manuel García-Margallo, the European Central Bank (ECB) with unprecedented severity as Tunix bank.

 

García-Margallo accused the ECB, which has reportedly bought for five months, no more Spanish government bonds and thus the pressure on Spain not reduced before, to keep "hidden". Literally, he added. "It does nothing to stop the fire of the (Spanish) Government debt," his claim on the ECB in the sign of European solidarity now to intervene in favor of his country, was not all. When asked how he saw the future of the European Union and its common currency, he replied that it could "not much longer go on," that countries such as Germany, debt free could, while others such as Spain standing water up to his neck.

 

What had happened 20 at that July 2012, the Black Friday signaled as early as the Thursday night by the images of nationwide protest rallies "Greek standards." Here, the organized power of protests by the unions were run primarily employed by the public service with the exception of a few final acts of violence in the capital peacefully everywhere. But the union leaders called the warnings of a "hot autumn", wants a second general strike this year wore on waking certainly not to reassure international investors in regard to the soundness and solvency in Spain.

 

Then came the early afternoon of the next big bang: Valencia asked the first of the seventeen regions of Spain for help from the newly created National Salvation Fund (FLA), because it has serious liquidity problems. Since it did not help that a quarter of an hour later from Brussels came the news that the Euro Group have released the more than 100 billion euros to recapitalize ailing Spanish banks and the first installment of disposable 30 billion for the already partly nationalized banks until the end of July were.

 

The faces of government officials fossilized

Of this and of the parliament on Wednesday adopted drastic austerity program of 65 billion unfazed, overthrew the Spanish stock market fell by almost six percent. At the same time increased the risk premium on Spanish government bonds already well above the Greek-Irish-Portuguese rescue addition to a record level of 610 basis points above German reference value. The interest rates for ten-and thirty-year bonds ended the trading day at around 7.3 percent is also acute in the danger zone.

 

The faces of government officials who had to announce on Friday itself even more bad news fossilized rapidly. Even the hard from her left Façon to be brought Deputy Prime Minister Soraya Sáenz de Santamaría called it "incomprehensible" that the markets in Spain punished in such a way where his government produce it for six months in the timing of the reform and austerity at a time.

 

In desperation sought the Deputy Prime Minister verbal refuge with federal Finance Minister Wolfgang Schaeuble said, "I fully agree with him. The situation we are experiencing is so because of the large uncertainty that exists in the euro zone. "Then dodged all questions, whether on the bank bailout now inevitably will come to the whole country, but closed already no longer sufficient. At the two major ghosts in the background, namely the possible insolvency of Spain or a breakup of the euro, was at that time then stir no more.

 

Six other regions are in need of help

The bad news flipped finally on his own Finance Minister Cristobal Montoro. He admitted that the recession will extend to a negative growth of an estimated 0.5 percent of gross domestic product (GDP) in 2013 for one year. Given falling tax revenues and rising social expenditure - unemployment is expected later this year rising to over 25 percent - is no longer with the previously approved mini growth of 0.2 percent expected. This year it will just as it has several foreign analysts, including the International Monetary Fund (IMF), have predicted to go down significantly: minus 1.5 percent.

 

Then had Montoro, the best pen-pushers in the cabinet of Prime Minister Mariano Rajoy, another piece of bad news: Because of rising interest rates and unemployment benefits would have to increase government spending in the coming year and by 9.2 percent. As an upper limit for the next budget, he called 126 billion euros (116 this year) and estimated the proportion of debt service on up to 39 billion. So this would be the largest budget item in general.

 

As the Minister of Foreign Affairs in Palma went out of his skin diplomats and deposed the emergency call to the ECB, the swirling dust of Valencia had not only not set, but spread to other regions. The six other candidates are called rescue Catalonia - the former "engine" of the Spanish economy alone corresponds approximately to the volume of Portugal - Balearic Islands, Canary Islands, Castile-La Mancha, Murcia and Andalusia may have. It is the largest and most populous region. You scrape all of the insolvent and can along without help from the central Wages Liquidez Autonómico (FLA), neither their use nor pay for the bonds maturing their suppliers.

 

Monti comes to Madrid

18 billion euros to put the government in the FLA pot. Of which 6 billion a called dormant "advance" the government agency with the best credit rating: the National Lottery. Valencia, a stronghold of the conservative People's Party, whose representatives are there over the years contributed megalomaniac buildings and even a new airport, which is never a plane has landed, is expected to require first aid as two billion. In Catalonia, there should be a bit more expensive. Perhaps the most obvious may be the last three decades Socialist-ruled Andalusian black hole, no one even dares to predict.

 

Prime Minister Rajoy also remained true to its strategy over the weekend not to step into self-publication. But it became known that he for the second Mario Monti, has been invited to Madrid - august his Italian neighbors - and co-conspirators against Chancellor Angela Merkel at the last European summit in Brussels. This will enable the two friends in Berlin alone at the thought of causing goose bumps "Euro Bonds" on a common approach and probably speak a new attempt to lure the ECB from its "hiding place". Some doubt now, though, that Monti wanted to identify themselves too closely with the Bredouillenspaniern, yet there is Italy, the 'risk premium' now suspended well.

 

Vice Premier Sáenz de Santa María was meanwhile from the exchange. "Now we need to work to ensure that the financial liabilities (the banks) do not poison the national debt" That's easier said than done if the EU and the ECB is not Spain under the arms . access Brussels to act from the perspective of Madrid always a snail's pace, where the Spanish crisis but is now viewed primarily as a "euro crisis" for which one - need new, credible supporting stability mechanisms - with central bank help. Be if Spain, which this year will have around 60 billion euros to repay loans due rescued, would have, there are two variants: the already "traditional" with loans to macroeconomic conditions and visits to the "Men in Black" or the use of Other funds from the bank bailout fund.

 

In almost all European capitals, including Madrid, has been in the past week vehemently denied that the 100 billion euros would be used not only to clean up the banks. But somewhere in the agreements is a smooth passage in which this kind - would allow - after approval of the euro group, and probably also of the German Bundestag. Perhaps as soon as a Foreign Minister García-Margallo hard to knock.

 

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Sat, 07/21/2012 - 17:09 | 2639249 I think I need ...
I think I need to buy a gun's picture

this shit is getting old,,,,,

Sat, 07/21/2012 - 17:26 | 2639264 Precious
Precious's picture

US Post Office says this is great news --- because they're out of fucking money TODAY.

 

... in wind, or rain, or sleet, or snow...

Sat, 07/21/2012 - 17:27 | 2639275 SheepRevolution
SheepRevolution's picture

Oh no problem. We'll just make Italy loan money to Spain, just like the last time. Works wonderful!

Italy's debt? EEErrrr, deficits don't matter?

Sat, 07/21/2012 - 22:53 | 2639696 three chord sloth
three chord sloth's picture

Y'know what's funny? We can say the same friggin' thing about everybody's rich uncle... Germany. I mean, they ain't exactly "in the black" either. They only look good 'cause while they are in debt up to their necks, the rest of 'em are in debt up to their eyeballs.

Sun, 07/22/2012 - 01:15 | 2639832 AldousHuxley
AldousHuxley's picture

http://www.youtube.com/watch?v=Vkvoicv5TfQ

 

Even Willie clinton says europe has 1-2 months left and that was last month.

 

http://www.youtube.com/watch?v=jd7GdHRmRXc

 

Soros says 3-4 months

 

remember soros broke he bank of england with his bet that Uk bank will have to break away from beta version of Euro in the 90s.

Sun, 07/22/2012 - 01:42 | 2639846 CompassionateFascist
CompassionateFascist's picture

 "perhaps the most obvious may be the last three decades Socialist-ruled Andalusian black hole, no one even dare to predict."  IIIIIIIIIIIII like it! Prolly shoulda left it in Spanish tho. And we'll be lucky if we have "1-2 months left".

Sun, 07/22/2012 - 06:25 | 2639926 jez
jez's picture

I can't see what everyone is getting so worked up about. Spain is running out of money. So what? Larry Summers and Paul Krugman have clearly explained the advantages of taking on more debt, indeed that the solution to debt is more debt.

 

So, Spain just needs to borrow another few zillion. Doesn't even matter what the interest rate is, because they can borrow some more in order to make the interest payments.

 

In fact I'm a bit surprised that I haven't read any op-eds by Summers or Krugman explaining what a fabulous success story Spain is.

Sun, 07/22/2012 - 13:17 | 2640415 Overfed
Overfed's picture

Yet if a regular schmuck wants to kite credit cards, he goes to jail.

Sat, 07/21/2012 - 19:10 | 2639416 El Oregonian
El Oregonian's picture

Don't worry it's in the mail...

Sun, 07/22/2012 - 00:51 | 2639810 palmereldritch
palmereldritch's picture

...Can I have fifty pounds to mend the shed?

http://www.youtube.com/watch?v=4W9p_NFm6qk&feature=fvwrel

Sun, 07/22/2012 - 00:29 | 2639780 Lord Koos
Lord Koos's picture

Plenty for wars and for banks, but no money for the US postal service -- the USA has become a terribly bad joke.

Sun, 07/22/2012 - 07:05 | 2639939 Moe Howard
Moe Howard's picture

It is odd that a Constitutionally required service, that could actually be profitable, is going bankrupt, and unconstitual bank and private corporation bailouts are not seen as a problem! How much does GM owe still, 35 to 40 billion FRNs or something like that? How far would that go in helping the post office? How much do the banks still owe us the taxpayers? Around a 100 Billion FRN not counting the GM money I already mentioned.

The destruction of the Republic continues.

Sun, 07/22/2012 - 10:39 | 2640148 MillionDollarBoner_
MillionDollarBoner_'s picture

... in wind, or rain, or sleet, or snow...

we're out of money...where did it go?

Sun, 07/22/2012 - 02:15 | 2639866 mick68
mick68's picture

That's what happens when people don't deal with their problems, they hang around, get worse, and ultimately take you down.

Sun, 07/22/2012 - 04:45 | 2639897 falak pema
falak pema's picture

bottle it and label it chateau Draghi. It'll make a fortune!

Sun, 07/22/2012 - 05:54 | 2639910 Treason Season
Treason Season's picture

Jumping the queue here to post this link w/ some good videos. In one, a guy in a Civil Guardia shirt is shouting to the protesters, "We are equals!"

There's also has a link from the Unified Association of Spanish Military (AUME) with a press release supporting the protests against the measures taken by the Government.

http://stillwandering.multiply.com/journal/item/2424/Madrid-Firemen-Teac...

On edit: Apparently there is a possible rift growing between the Defence Sec who is usually a party hack and UAME.

http://translate.google.com/translate?sl=es&tl=en&js=n&prev=_t&hl=en&ie=...

It's getting interesting in Spain as an Aljazeera reporter has mooted an "ungovernability" meme.

 

Sun, 07/22/2012 - 08:58 | 2640003 magpie
magpie's picture

Considering that despite all kinds of fail Greece still has the political freak show inside the parliament (via Neonazi and Stalinist parties) Spain could pass directly into fullblown political collapse.

Sat, 07/21/2012 - 17:13 | 2639254 falak pema
falak pema's picture

so the ecb prints; what's the big deal !

L'euro est "irréversible" et la BCE n'a pas de tabou, selon Draghi

Nothing is taboo to the ECB according to Draghi. He is open to ALL eventualities! AS the EUro is "irreversible". Said from the Horse's mouth! 

Sat, 07/21/2012 - 17:42 | 2639289 A Man without Q...
A Man without Qualities's picture

He may be open to all eventualities, but he cannot stop them.  

Sat, 07/21/2012 - 17:46 | 2639296 tenpanhandle
tenpanhandle's picture

Old cherokee proverb: in land of few horses left, must beat current horse to death before saddling new horse.

Sat, 07/21/2012 - 18:04 | 2639319 FieldingMellish
FieldingMellish's picture

Surely the horse must be dead before you beat it.

Sat, 07/21/2012 - 18:44 | 2639372 GMadScientist
GMadScientist's picture

Maybe you can get a room and tenpan can show you exactly how he beats it.

Sat, 07/21/2012 - 18:58 | 2639395 cossack55
cossack55's picture

Thats funny!!

Sun, 07/22/2012 - 00:43 | 2639801 tenpanhandle
tenpanhandle's picture

your midget porn download is probably finished by now so you can retire to your usual venue.

Sun, 07/22/2012 - 09:24 | 2640024 GMadScientist
GMadScientist's picture

I may be a trollop and a whore, but I would never stoop so low as to work for the SEC.

Sun, 07/22/2012 - 17:40 | 2640998 tenpanhandle
tenpanhandle's picture

do you still beat your wife, though?

Sat, 07/21/2012 - 18:31 | 2639356 New_Meat
New_Meat's picture

Lizzie Warren, Cherokee, is attempting to do that as she speaks.  - Ned

Sat, 07/21/2012 - 18:57 | 2639394 nmewn
nmewn's picture

Did the horse expire on a government street or bridge?

Then we didn't do that!!!

Sat, 07/21/2012 - 19:31 | 2639432 francis_sawyer
francis_sawyer's picture

Surely the answer to all these problems is more 'firewater'...

Sat, 07/21/2012 - 19:46 | 2639445 nmewn
nmewn's picture

Absolutely...cuz they don't make that ;-)

Sat, 07/21/2012 - 17:10 | 2639255 surf0766
surf0766's picture

the union crooks are just as bad as all the other crooks.

Sat, 07/21/2012 - 18:32 | 2639358 New_Meat
New_Meat's picture

Unions are people too.  - Ned

Sat, 07/21/2012 - 18:46 | 2639375 GMadScientist
GMadScientist's picture

Fetuses, corporations, Terry Schiavo...fuckin' A...perhaps we can just save time and list the things that aren't people?

Sat, 07/21/2012 - 18:55 | 2639389 nmewn
nmewn's picture

Well, according to "progressives" corporations are not people.

Which puts the New York Times in a pretty weird position...which is absolutely normal for them I guess when you think about it...lol.

Sat, 07/21/2012 - 19:00 | 2639399 cossack55
cossack55's picture

Easy. Anyone over the age of 55 without $10 million or more in "the market".

Sat, 07/21/2012 - 17:11 | 2639256 SeverinSlade
SeverinSlade's picture

Don't worry. CNBS will tell us Monday that this all priced in. Time to buy Chipotle.

Sat, 07/21/2012 - 18:46 | 2639377 GMadScientist
GMadScientist's picture

Shares or Boooritos?

Sat, 07/21/2012 - 17:13 | 2639261 CaptFufflePants
CaptFufflePants's picture

The can is disintegrating and can be kicked no further.

Sat, 07/21/2012 - 18:47 | 2639381 GMadScientist
GMadScientist's picture

The can, if kicked further, will circle around and nail the kicker in the head.

Sat, 07/21/2012 - 19:03 | 2639409 gatorengineer
gatorengineer's picture

The Road Bernanke paved is a mobius strip.  The can can be kicked infinitely....  Print on.....  There is no inflation /Sarc

Sat, 07/21/2012 - 17:19 | 2639268 orangegeek
orangegeek's picture

More bullish news for the markets.  The Dow should be ready rocket at the open.

 

It's amazing how long these markets have held.

Sat, 07/21/2012 - 21:39 | 2639608 The Monkey
The Monkey's picture

Earnings are slowing with pockets of outright top / bottom line deterioration. Mixed bag, leaning negative until prices come down. Ahead of our skiis for sure.

Sun, 07/22/2012 - 01:50 | 2639852 CompassionateFascist
CompassionateFascist's picture

No it is not amazing. The stock"market" is being monetized on a daily basis by the Fed via the NY banks.

Sat, 07/21/2012 - 17:27 | 2639276 WarriorClass
WarriorClass's picture

In the last 130 years of the NRA's existence, how many gun rights have you lost? How many rights has the NRA compromised away? Stop being fooled by this fake gun rights organization and join Gun Owners of America - they don't compromise!

Sat, 07/21/2012 - 18:49 | 2639385 GMadScientist
GMadScientist's picture

In the last 130 years, how many times have you actually needed a firearm to defend yourself from foreign invaders or resist your government?

Shit or get off the pot.

Sat, 07/21/2012 - 19:01 | 2639400 nmewn
nmewn's picture

By "foreign invader" do you mean non-citizen burglar or home invader?

Sun, 07/22/2012 - 09:28 | 2640026 GMadScientist
GMadScientist's picture

I actually meant an attempted occupation of the US by a foreign power (I know it's difficult to get used to that happening the other way around...it's been 200 years and all), but why make distinctions when you live in the free-fire zone called Florida?

 

Sun, 07/22/2012 - 13:22 | 2640432 Overfed
Overfed's picture

The US is already occupied by foreign powers, but there will be no revolution before it is time. It's almost time.

Sat, 07/21/2012 - 19:45 | 2639444 Winston of Oceania
Winston of Oceania's picture

None because we ALREADY HAVE THEM in the first place...

Sun, 07/22/2012 - 09:29 | 2640029 GMadScientist
GMadScientist's picture

Fat lot of good they're doing for you too.

Heckuva job, Brownie!

Sun, 07/22/2012 - 13:24 | 2640435 Overfed
Overfed's picture

In other words: just roll over and grovel like a good progressive.

Sat, 07/21/2012 - 17:29 | 2639278 Cast Iron Skillet
Cast Iron Skillet's picture

I am soooo happy that I the article in the original language read can. Google translate really needs to restructure the sentences better when translating.

Sat, 07/21/2012 - 17:33 | 2639280 BlueCollaredOne
BlueCollaredOne's picture

Funny that was.

Sat, 07/21/2012 - 18:23 | 2639340 This just in
This just in's picture

To be reading that is having then been at a cake that is in pieces.

Sat, 07/21/2012 - 18:35 | 2639361 Thomas
Thomas's picture

Is that you Yoda?

Sat, 07/21/2012 - 22:27 | 2639665 RockyRacoon
RockyRacoon's picture

I was particularly fond of the part where the dude came out of his skin.   Classy.  Perhaps we could skin a few of our own politicians as well.   Spain has set the standard here.

Minister of Affairs in Palma went out of his skin...

Sat, 07/21/2012 - 22:57 | 2639701 three chord sloth
three chord sloth's picture

Hmm. Must be one of those lizard people Ickes is always going on about.

Sat, 07/21/2012 - 19:02 | 2639404 cossack55
cossack55's picture

Was the final print of the Dodd-Frank bill translated by Google?

Sat, 07/21/2012 - 20:10 | 2639480 shovelhead
shovelhead's picture

I think the article and FD both were translated by An Anonymous.

They just deleted the US citizenisms.

Sat, 07/21/2012 - 17:39 | 2639284 A Man without Q...
A Man without Qualities's picture

Even in the current state, the Spanish banks face realistic losses of €250bn.  They have about €100bn of loan loss reserves, meaning the proposed bailout is not enough.  Add to that, the federal government is out of money and the autonomous regions are in a huge hole, with a collapse in revenues and too many debts obscured over recent years.  A full 50% of state spending comes out at the regional level, so the Spanish people are going to feel the consequences very soon.

In my view, there is not enough capacity in the EFSF even to cover Spain.

Since the inception of the Euro, the nation has gorged itself on cheap debt, which combined with a construction boom hid the fact that what little industry there was has been destroyed by the rise of the emerging markets.  The productive economy was withering on the vine, while the country enoyed a debt fueled consumption boom.  They cannot pay yesterday's bills and eat today.  Of course, they will blame foreigners, blame bankers and especially the Germans, but the real problem is the corrupt and bloated public sector, who won't fix the problem because they can't accept it is them.

As for the solution, I genuinely don't see one.  The warning signs were ignored by the European Union, the IMF, everyone went along with the fantasy, because it was so much easier to overlook.  Even now, they somehow think you can stabilise real estate prices and allow banks to clear their books in an orderly fashion.  The reality is, nobody wants to buy an unfinished apartment in the desert next to a golf course that was never built, especially someone with no money and no job.  And without the cosy relationshp with the Cajas, the insolvency of the local governments is going to be quickly revealed.

Sat, 07/21/2012 - 18:06 | 2639321 piliage
piliage's picture

And what everyone forgets is that Spain, until 1975, was still a fascist dictatorship that had never fully recovered nor solved the divisions from its civil war. Hell, as late as 1981 there was an attempted coup!

This situation is a powder keg, particularly with hard leftists, Basque separatists, and old school fascists ready to duke it out again at the drop of a hat. Add to that 50% youth unemployment, and it is one hell of a volatile mix.

Of course, not only is Greece similar to this, but it also has one of the highest military expenditures in the world. They have arms, and the military, when the government doesn't do what it thinks is right, uses them.

Things are going to get very very ugly.

 

Sat, 07/21/2012 - 18:41 | 2639367 New_Meat
New_Meat's picture

Although there won't be [much] external money to feed into Spain for arms excepting:

  • the Basques (who can isolate themselves) and,
  • the Califate-istaz, who have already demonstrated certain capabilities wrt influencing the Spanish populace.

Who knows?  Where did the true Spanish heroes go?

- Ned

{are the Jesuits around?}

{{does Cordoba flip?  again?}}

Sat, 07/21/2012 - 19:05 | 2639410 nmewn
nmewn's picture

You're on a roll Ned ;-)

Clearly, a new caliphate needs to be established to instill some sort of "discipline" to this untidy "democracy" thingy...bring on the Moors!!!

Sat, 07/21/2012 - 20:14 | 2639483 shovelhead
shovelhead's picture

Spain news update:

Gen. Francisco Franco is still dead.

Sun, 07/22/2012 - 01:10 | 2639828 Treason Season
Treason Season's picture

He's just sleeping.

Sun, 07/22/2012 - 01:56 | 2639856 CompassionateFascist
CompassionateFascist's picture

Viva Franco! Or, as one of his generals said, "Long Live Death!".

Sun, 07/22/2012 - 05:32 | 2639913 Treason Season
Treason Season's picture

Check this link out and the press release from AUME.

http://stillwandering.multiply.com/journal/item/2424/Madrid-Firemen-Teac...

Sat, 07/21/2012 - 19:34 | 2639436 rockraider3
rockraider3's picture

The "hat" dropped several years ago.  What, do they need to dig a hole and then drop it even further?

Sat, 07/21/2012 - 19:44 | 2639442 Winston of Oceania
Winston of Oceania's picture

Greece spends enough on military to keep out the Turks, at least in their minds.  I hear the EU may sell Greece to the Turks anyway if only they assume the debt. /sarc

Sat, 07/21/2012 - 18:10 | 2639327 XitSam
XitSam's picture

Will Spain be selling their gold? 280 tons I hear. Not that that will change anything.

Sat, 07/21/2012 - 22:36 | 2639675 AC_Doctor
AC_Doctor's picture

"Will Spain be selling their gold? 280 tons I hear. Not that that will change anything."

China nabbed that stack months ago...

Sun, 07/22/2012 - 07:29 | 2639952 BigDuke6
BigDuke6's picture

The rumour they are selling will be used by TPTB to manipulate the price down for a while.

Sat, 07/21/2012 - 18:11 | 2639328 Griffin
Griffin's picture

As for a soulution, we could build a pirate ship and attack the tax havens, like the Cayman islands, British Virgin islands and other places where the super rich are allowed to hide money.

http://www.guardian.co.uk/business/2012/jul/21/global-elite-tax-offshore...

How is it that the rich somehow always end up with all the money created but the opposite part of that creation, the debt, seems to land on our sholders with all the austerity and crap that comes with it.

 

 

Sat, 07/21/2012 - 18:32 | 2639359 johny2
johny2's picture

Give me control of a nations money supply, and I care not who makes it’s laws

Sat, 07/21/2012 - 18:46 | 2639379 Dr. Engali
Dr. Engali's picture

What are we going to get when we raid it ? Digits? We better take plenty of thumb drives instead of chests.

Sat, 07/21/2012 - 18:51 | 2639386 GMadScientist
GMadScientist's picture

We'll monetize Mittens' tears.

Sun, 07/22/2012 - 07:10 | 2639941 Moe Howard
Moe Howard's picture

Treasure ain't what it used to be arggh.

Sun, 07/22/2012 - 05:41 | 2639917 Testudo321
Testudo321's picture

Maybe like this:

http://www.youtube.com/watch?v=errwLVgHpXY

Sure it is from "the bleak days of 1983", but....

Sun, 07/22/2012 - 10:47 | 2640167 MillionDollarBoner_
MillionDollarBoner_'s picture

We Brits have never been averse to sponsoring "privateers".

Anyone up for a bit of pillage and plunder?

Avast there, ye tax evaders!

Sat, 07/21/2012 - 18:20 | 2639336 disabledvet
disabledvet's picture

"are all Caja's created equal?"http://ebook.law.uiowa.edu/ebook/content/spanish-financial-crisis. that's a lot of "small banks." some of those banks probably have no trouble making loans...depending on where they are...who they are...etc, etc. Some of these Spanish cities are RICH. For example...VALENCIA. If they need to raise capital to support a bond offering such that VALENCIA can say..."guarantee a shipment of" such and such...well, perhaps an American or British Bank can make that happen. Perhaps a US or BRITISH CENTRAL Bank can then "stand behind said bank." Yes? No? "You're a lunatic because you think there are work-arounds to the End of the World"?

Sat, 07/21/2012 - 20:43 | 2639466 Element
Element's picture

It's funny how back in March/April 2010 everyone thought Ireland was not going to be a problem, because they were supposedly, "doing the right thing", making cuts, winding down excesses, blah-blah-de-blah-blah, ... and people were trying to argue that Italy was not really all that indebted, so was not really one of the PIIGS, so should be OK, ... and other people were asserting that Spain would not become like Greece (no serious logic was offered for why though, it was a belief-thing, apparently).

And I keenly remember it being pointed out during early 2010 that if Spain ever did run out of money, and could not fleece-the-world, or at least Euroland, with its Govt bonds, then this would be the sure-end of the Euro system.

So here we are a bit over 2-years later, and the truth is being revealed - and so it will be.

The ESM is just the latest hopeless layer of ejaculating centralist state denial-ism, and the pitiful and absurd truth of it shall also be revealed, not by mere words, but via deeds.

Germany doesn't actually offer any answer/solution, via fiscal and let's not forget political centralist-Union (as this is actually just the Empire of Hope-ism), because Germany simply wants to be in control of the rudder on the lifeboat as the Euro ship sinks out of sight.

And then it will be, "Oh look, all we have left now is a nascent centralising European Empire dominated by Germany ... oh well, ... let's go with that  ... oh, ... and we'll need a new reserve (Master) fiat system, to finance and to trade (row the boat) within it ... right fellas?". 

And the answer will be, "Of course, ... once more, for the Fatherland!". 

Or in the immortal words of Timmah, "No chance of that!"

Meanwhile, back in the real-world in the interim;  this is all a delusion-by-design, because this entire system is fractionating--not combining.  So a political union is now rendered impossible, thus Germany has no answer either, as fiscal union is not going to occur sans a comprehensive centralising political union, when all it is really is so far is a failed fiat union.

So the Govts proposing that will be swept aside by the populist backlash, and no amount of systematic and systemic denial and propaganda will reverse that, to herd and corral the Europeans into the proto German-esqe Empire, 'feed-yard'.

It's just an attempted (and soon to be obviously failed) take-over of a weakened entity.  So trying to be the captain of the lifeboat is all Germany will in fact get ... they will still be in a lifeboat though, ... and in need of an actual ship.

 

Down-sizing bitchez! ...

 

You can imagine what happens in the life boat after that; "let's draw straws to see who we'll eat next" ... i.e. real austerity, and what follows on from it.  Large-scale Balkanisation, as each people, and each relict post-euro pseudo-Sovereign realises that it is just someone else's lunch, ... unless they act independently to ensure their own needs and security.

The question then is;  is the USSA (centralising genuinely fascist anti-people outrage, called Washington, District of Columbia) going to do the same thing?

Right now I can't see how it won't, as the tighter Washington DC tries to hold-on, via propaganda, obvious rediculous levels of ludicrously unbelievable lies, every form of intimidation and coercion, and actual violent force, backed by absurd levels of police and imprisonment, and a central defacto 'OK' to torture and murder anyone, anywhere, without actual evidence of any wrong-doing or judicial review, the more the US people's minds-and-hearts will slip forever out of Washington's grip, and demand its complete overthrow.

I don't see a viable centralist and patriotic, "New Deal" option emerging from that.

Sat, 07/21/2012 - 22:06 | 2639641 lakecity55
lakecity55's picture

USA persons will split into regions.

Working regions will thrive, welfare regions will be wastelands.

Sun, 07/22/2012 - 07:14 | 2639944 Moe Howard
Moe Howard's picture

USA persons = US citizenisms???

Sat, 07/21/2012 - 17:41 | 2639285 radicall
radicall's picture

Whatever you do after reading this.. be careful shorting US stocks. You will get squeezed out. 

 

If the point is to make money - it just seems so much easier (for now) to make money on the long side than on the short side.  Just as an example - S&P went from -0.3% to +0.6% on Wednesday between 9:30 and 10 am ET on Wednesday and ended the day even higher on nothing (maybe Bernanke Testimony to the house?) despite bad news from intel the day before. so over 1% gain on the day for nothing and Spanish yields going well above 7% takes it down less than 1%!

Newsflow for Wednesday here

http://seekingalpha.com/currents/all/2012/07/18

S&P chart (4 hr bars, Time as PT) here

http://twitpic.com/aa89ip

 

Sat, 07/21/2012 - 19:07 | 2639411 Meesohaawnee
Meesohaawnee's picture

point well taken. i lost faith fundamentals mean a thing 6/28 6/29 when Brian Sack gave his gift to the hedgies. And POMO isnt a funnel from the middle class to the elite. NO market comes from 180 down in the dow (like it matters) on no news to finish green... I find Seeking alpha just a site for Jim Cramer wannabees. Seems the financial literacy there is lacking .. some good stuff. but way too much permabullshit where people think technicals and earnings matter. If your a charter. check out www.etfdigest.com  "daves daily" i think this guy is great. Youll laugh at his snarky commentary but its true. Hes really good. Just MHO

Sat, 07/21/2012 - 20:15 | 2639484 radicall
radicall's picture

I just picked up newsflow from SA because it is easy to access a specific day's news. My twitter stream for that period would totally diverge from the "reality of the stock market" during that period

 

Thanks for the link.. here is one back at ya (nice if you trade more than just stocks, I do more futures)

http://hedgefundmgr.blogspot.com/

Sat, 07/21/2012 - 18:03 | 2639317 BurningFuld
BurningFuld's picture

I'm going to one up Faber and say 12 WEEKS! 

Sat, 07/21/2012 - 18:46 | 2639376 New_Meat
New_Meat's picture

noted.

- Ned

{although I do recognize that Saturday Night Chemically-Altered-Mind-Thinking-Process-Fuck-Up-Disorder will get you off the hook}

Sat, 07/21/2012 - 20:09 | 2639479 bigkahuna
bigkahuna's picture

The market will only crash when the global banking cartel wills it to happen. 12 months? 12 weeks? 12 days? There is no telling.

Sun, 07/22/2012 - 07:57 | 2639963 Jack Sheet
Jack Sheet's picture

The chick is better than Maria Barfaroma or the Chinese transvestite.

Sat, 07/21/2012 - 17:43 | 2639291 hangman
hangman's picture

the new is getting old and old is getting new? 

Sat, 07/21/2012 - 17:46 | 2639295 RobotTrader
RobotTrader's picture

SPY is breaking out in many of the world's currencies, more Spain problems mean more clamoring for US blue chip stocks and Treasuries.

Sat, 07/21/2012 - 18:19 | 2639335 DeadFred
DeadFred's picture

The safety investments will break hard when they do break but there is no nanosecond level stress on them now. Where would you want your money, in a Spanish bank or in the S&P? I know the correct answer is gold but not everyone else understands that. Be careful with your short positions until we break out of this absurdly steep upward trend.

Sat, 07/21/2012 - 18:28 | 2639349 disabledvet
disabledvet's picture

This just in from the California Real Estate recovery:http://www.youtube.com/watch?v=zVay-RfNGv8
Not En Vogue? Sorry!
http://www.youtube.com/watch?v=yvFuVSPr0e0&feature=related

Sat, 07/21/2012 - 18:55 | 2639390 GMadScientist
GMadScientist's picture

We all repatriate after our own fashion.

(not very patriotic)

Sat, 07/21/2012 - 17:50 | 2639303 Atomizer
Atomizer's picture

 

 

EFSF transfers to ESM who transfers to FROB who trickles money to the Spanish Banks.. Thus squeezing more blood from the turnip just prior to August 30,2012 deadline. 

http://www.efsf.europa.eu/attachments/fi/efsf_presentation_en.pdf 

We’re rich bitch!!

 

/sarc

Sat, 07/21/2012 - 18:08 | 2639326 radicall
radicall's picture

Don't worry... Italy will bail out Spain with it's $139 Billion contribution to EFSF.

 

** I Wonder why Italian yields went up Friday?

Sat, 07/21/2012 - 17:49 | 2639305 Poetic injustice
Poetic injustice's picture

True, but give people some slack. They want to spend NOW, and blame somebody else for their decisions. Preferably foreigners. Letting at least some banks fail would make things better, as some debt would be destroyed and bought cheap. I agree with previous poster about bloated public sector as big part of failing. Countries with more than 10% of GDP spent on public salaries are the ones failing at the moment.

Sat, 07/21/2012 - 18:19 | 2639333 Marco
Marco's picture

Then there is Sweden ... countries with poor trade balance are failing and failing in ways far worse than they would have failed had their debts been in their own currency.

There is no replacement for sound governance, whether that governance be in favour of a mixed economy or social darwinism with nearly no government except for law enforcement.

Sat, 07/21/2012 - 17:52 | 2639306 buzzsaw99
buzzsaw99's picture

jmgm, what a drama queen. the can it will be kicked.

Sat, 07/21/2012 - 18:00 | 2639314 Rover
Rover's picture

Yeah, Spain is definitely not the last stop for this train...

Sat, 07/21/2012 - 18:38 | 2639363 buzzsaw99
buzzsaw99's picture

Banco Santander (SAN) has a divi of 10.60% with a weak eur/usd to boot. BTFD anyone?

Sat, 07/21/2012 - 19:00 | 2639398 New_Meat
New_Meat's picture

Banco Santander (SAN) owns Sovereign Bank in these-here parts.

http://www.sovereignbank.com/

- Ned

Sat, 07/21/2012 - 17:51 | 2639307 rodocostarica
rodocostarica's picture

Espana esta JODIDO.

Putas todas.

Sun, 07/22/2012 - 03:11 | 2639881 Treason Season
Treason Season's picture

Que se jodan!

Sat, 07/21/2012 - 17:56 | 2639312 Rastamon
Rastamon's picture

 

 

 

 

FAZ.net .....hahahaha .... how appropriate

Sat, 07/21/2012 - 18:07 | 2639325 bob_dabolina
bob_dabolina's picture

September, around the same time we hit our debt ceiling in the US

Sat, 07/21/2012 - 18:16 | 2639334 A Lunatic
A Lunatic's picture

I'll be out of money in three fucking weeks..........

Sat, 07/21/2012 - 18:41 | 2639366 Dr. Engali
Dr. Engali's picture

You didn't borrow and spend that money Spain. Somebody else did that for you.

Sat, 07/21/2012 - 18:49 | 2639382 Poetic injustice
Poetic injustice's picture

Of course, it was Germany who spent money. And Germany should pay more reparations for uh, helping Franco. At least one trillion, but being modest Spain will take 500 billion only. As war veteran said last week, Germany should have more responsibility!

Sat, 07/21/2012 - 19:10 | 2639415 GMadScientist
GMadScientist's picture

Peas in Europe!

Sat, 07/21/2012 - 18:44 | 2639370 Seasmoke
Seasmoke's picture

November Spawned a Monster

Sat, 07/21/2012 - 18:58 | 2639371 razorthin
razorthin's picture

If a fat lady sings and the algos have no ears to hear her, does she make a sound?

If she shits in the woods, will any breathing humans stick around?

Sat, 07/21/2012 - 19:02 | 2639405 New_Meat
New_Meat's picture

No, and no.  She'll just be fucked. As will the local folk in the village over there. - Ned

Sat, 07/21/2012 - 18:56 | 2639392 q99x2
q99x2's picture

Batman did it.

Sat, 07/21/2012 - 19:03 | 2639407 New_Meat
New_Meat's picture

Both Batman and Bane are people, too. - Ned

Sat, 07/21/2012 - 22:02 | 2639632 lakecity55
lakecity55's picture

And the Joker picked the wrong movie. He wasn't in this edition.

Sat, 07/21/2012 - 19:35 | 2639437 malek
malek's picture

Note to readers: "Tunix" is the german phrase (actually "tue nichts") for Do-Nothing.

Sat, 07/21/2012 - 19:35 | 2639438 rockraider3
rockraider3's picture

If Spain erupts into civil war, that would make the Olympics sort of interesting.  Oh nevermind, I'm not watching the Olympics either way.

Sat, 07/21/2012 - 22:01 | 2639630 lakecity55
lakecity55's picture

But TPTB have already planned a war on Iran by blowing up the olympics, according to the conspiracy sites.

Sat, 07/21/2012 - 19:55 | 2639456 Black Friday
Black Friday's picture

Someone is plaing my tune :p

Sat, 07/21/2012 - 20:26 | 2639496 robertocarlos
robertocarlos's picture

I for one welcome our new Caliphate overlords.

Sat, 07/21/2012 - 20:34 | 2639510 shovelhead
shovelhead's picture

Und vere are Hans und Franz ?

 "Vere here to pomp you UP, you Spanish girly-banks".

 

Sat, 07/21/2012 - 20:38 | 2639520 TrainWreck1
TrainWreck1's picture

40 days? That's almost a (metric) month.

 

Sat, 07/21/2012 - 20:45 | 2639525 pasttense
pasttense's picture

Anyone care to share what their credit card interest rates are? I think mine are around 20%.  So what is the big deal that Spain has to pay 7%-8% interest?

 

Sun, 07/22/2012 - 07:16 | 2639945 Moe Howard
Moe Howard's picture

9.15% not that I would ever have a balance for more than a day.

Sun, 07/22/2012 - 15:15 | 2640689 WmMcK
WmMcK's picture

Does not matter if you don't go past the "grace period".

Sat, 07/21/2012 - 21:18 | 2639569 Arnold Ziffel
Arnold Ziffel's picture

Subtracting all the Banker Bonuses and commissions and Miscellaneous bribes and kickbacks, the actual amount that trickles down to the people is probably less then $42.87.

Oh well. There is more on the way.....

Oh, btw:

"Falling property prices, a weak pound, and fears over job security are forcing those living abroad to rethink the move.

Britons residing in Spain are suffering the most financially, with four in five complaining that the drop in the value of the pound against the euro has left them worse off.
 
For many of the estimated one million Britons living in recession hit Spain, where unemployment stands at almost 20 per cent, the dream has turned sour.

The poll commissioned by Moneycorp, the UK foreign exchange specialist, found that 74 per cent of those living in Spain are considering repatriation."

 

http://www.eyeonspain.com/blogs/spainnews/2818/three-quarters-of-british...

 

Where is that ZH contributor who always brags about the joys of living abroad?

Sun, 07/22/2012 - 02:41 | 2639875 CCanuck
CCanuck's picture

Ya, but that Spainish broad is spent, just like the Italian, and Greek broads.

After a few pints, the Ugandan broad is looking mighty fine...hic..

Cc.

Sun, 07/22/2012 - 07:29 | 2639946 Moe Howard
Moe Howard's picture

I really don't "get" it. Huge unemployment in Spain should drive down prices, making a fixed income person from abroad better off there. High employment generally means rising prices, making it more difficult for fixed income from abroad.

Where is a sovereign man to run to?????????????

Does he have a free report about this situation?

The quoted article however seems to be mostly confused bullshit:

"Our research shows that British expats have had a tough time and the findings reveal that no country has escaped unharmed from the economic downturn," he said.

"Brits living in Europe are feeling the effects of the weak pound as they are more likely to be reliant on income from their British property, UK pension and other regular sources of funds."

Those that own property abroad have seen the problem compounded by a dramatic fall in the real estate market, particularly in Spain, where prices on the Costas have dropped as much as 65 per cent.

"Brits living in Spain are particularly affected by the struggling property market with many owning holiday homes and letting out their Spanish properties," explained Mr Kerns.

But he said that British expats could do more to protect their income and avoid "nasty surprises" due to currency fluctuations.

The Brits living in Europe part makes sense, if the pound has been dropping against the Euro, and you rely on pound income.

Those that own property abroad part makes sense, if THEY DON'T LIVE THERE! Brits living in Spain let out their Spanish properties? Where do they live then, a tent? Look, if you own a property in Spain [you, not a bank] and live in it, what the fuck do you care what property values are? Who are they talking about, the idiot time share crowd?

Brits go to Spain to retire because it is cheap and warm.

They are leaving because it is getting cheaper and warmer [if you are a member of the church of global warming]?

WHAT THE FUCK?

Sun, 07/22/2012 - 08:18 | 2639977 Freebird
Freebird's picture

Old news. Sterling is at around a 4 year high against the
Euro.

Sat, 07/21/2012 - 22:55 | 2639698 David Wooten
David Wooten's picture

Spain will come up with the money before time is up.  The real collapse will come after the US election.

Sat, 07/21/2012 - 23:14 | 2639713 lasvegaspersona
lasvegaspersona's picture

GOOGLE TRANSLATE, weakness issu8e dominate causality from future present cannot make sentence write right...right?

Translation: google tranlate is having a bad day

Sat, 07/21/2012 - 23:18 | 2639715 JohnKozac
JohnKozac's picture

All for the Good and Glory of the King:

 

Many Spaniards were dumbfounded when news broke in April that the king had made a secret journey to hunt elephants in Botswana even though it was widely known he was president of the Spanish branch of the fund.

Such an opulent indulgence also angered Spaniards at a time when national unemployment hovers around 25 percent, the economy is contracting and there are fears the country may need an international financial bailout.

 

http://www.msnbc.msn.com/id/48271859/ns/world_news-world_environment/#.U...

 

Sat, 07/21/2012 - 23:18 | 2639719 lasvegaspersona
lasvegaspersona's picture

This is the natural outcome of voting yourself benefits you cannot afford... note to socialists of Europe...times up, last call...and oh settle up with the barmaid.

Sun, 07/22/2012 - 01:43 | 2639847 bob5e
bob5e's picture

It's now time for the Spanish Inquisition . . and the comfy chair . . Confess!!!

Sun, 07/22/2012 - 03:17 | 2639883 Peter K
Peter K's picture

Socialism es muerte.

The choice is a market economy or...... how shall I put this: Maybe it's time to "de-mothball" the old Franco statues. Peace and prosperity of over a quarter of a century.

Just sayin.....

Sun, 07/22/2012 - 07:21 | 2639947 Moe Howard
Moe Howard's picture

Franco brought neither. Re-read your history please.

Sun, 07/22/2012 - 10:18 | 2640114 Peter K
Peter K's picture

It is not I who needs to re-read their history books, sir:)

Sun, 07/22/2012 - 07:33 | 2639955 Trichy
Trichy's picture

Saw a program on TeleCinco yesterday about how the Cajas fooled savers (a majority being old people and people with disability) into a scam called Participation Preferentes. An interest rate product with a nice little twist, the only legal buyer was the issuer, the cajas themselves. You guessed it the banks pulled the f#%^!$ rug out in concert and pulled the bids from 100 to 20. 700,000 savers affected and an estimated 30 bn Eur lost and everyone knows the rest, no one in jail, money evaporated.

Sun, 07/22/2012 - 08:26 | 2639981 Super B
Super B's picture

I agree with ALL of you.

Sun, 07/22/2012 - 10:51 | 2640176 Grand Supercycle
Grand Supercycle's picture

SP500 downleg expected to continue next week onwards.

http://www.zerohedge.com/news/2012-12-24/market-analysis

Sun, 07/22/2012 - 11:39 | 2640262 Snakeeyes
Snakeeyes's picture

Not surprising. Spain is in dire economic condition. Those housing bubbles are murder when combined with Socialism (the PM who looked like Blackadder).

http://confoundedinterest.wordpress.com/2012/07/22/6-spanish-regions-may-request-bailout-spain-entering-third-leg-of-sovereign-yields-high-unemployment-crashing-home-prices-and-large-budget-deficits/

Sun, 07/22/2012 - 14:29 | 2640580 Peter K
Peter K's picture

And a real nutter to boot:)

Mon, 07/23/2012 - 10:23 | 2642416 Remington IV
Remington IV's picture

40 days is generous

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