Chart Of The Day: For Spain, The Real Pain May Be Just Beginning

Tyler Durden's picture

Up until now, the title of "Spain's scariest chart" belonged to one depicting its youth (and general) unemployment, both of which are so off the charts it is not even funny (especially to those millions of Spaniards who are currently unemployed). As of today we have a contender for joint ownership of said title - Spain's monthly deposit outflows, which in July hit the highest amount ever, and where the YTD deposit outflow is now the highest on record. One look at the chart below confirms that nobody in Spain got the June 29 Euro summit memo that "Europe is fixed"...

And some other ugly charts confirming memo non-receipt.

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GetZeeGold's picture



Is something going on in Spain?


How is it I'm just hearing about this? 


CPL's picture

Nothing happening here, move along...droids of something or a rather..

Michael's picture

Waking thought of the day:

I figured out why they use the words "Conspiracy Theory".

It's the excuse they make for you to get you out of doing your own homework and look the other way.

When you hear the words "Conspiracy Theory" used by them, you should run as fast as you can to the commuter and Google search the topic their talking about. It's very easy.

Fish Gone Bad's picture

The ongoing thought is that conspiracies just do not happen.  That is, until they really do.  Take the biggest glaring conspiracy - Fixing LIBOR.  That took a huge effort on the part of many people with something to gain.

Conspiracies really do happen.

JeffB's picture

Conspiracy theories are a staple in the American criminal justice system.

The prisons are full of people convicted of conspiracies.

But the mainstream media uses the bogeyman "conspiracy theorists" into poisoning the well so that people will not listen to them.

It wouldn't surprise me if some of the more outlandish conspiracy theories that are exposed as shams aren't a type of false flag operation... that they're at least given some encouragement, whether financially, through media exposure or even just online encouragement on websites and discussion forums, so that they can reinforce the perception in the minds of the public that "conspiracy theorists" are all a bunch of wackos.

redd_green's picture

Most definitely.   it is the powers that be telling us all "Don't look at this any more.   Stop looking RIGHT NOW or you're stupid.".     And, for the most part, for the general public, it works.   Unfortunately.  

In the USA, you could pour gasoline on someone's feet, light the gasoline, and convince them that they are not on fire as long as you could wriggle "conspiracy theory" into your argument.

laozi's picture

Here is something you might not have heard: Sweden - another country that starts with an S, dont mix them up! - has inflated private debt, mostly due to mortgages. Does that ring a bell? Any idea what might happen?

papaclop's picture

I'm pretty sure you're kidding, but your statements still represent a scary number of like alleged "minded" people.

BeetleBailey's picture

New names for advanced ski slope trails world-wide;


Wakanda's picture

España - cuatro diamantes negros

Ar-Pharazôn's picture

Spain is not Uganda /sarc


someone still have to understand that the whole european and american elite are LYING???????????

GetZeeGold's picture



Barcelona is beautiful this time of year.....just duck the falling brimstone.


AG BCN's picture

Barcelona is bloody humid this time of year.

old naughty's picture

...And they kill bulls as sport.

But the bulls are getting smarter.

Peter Pan's picture

I can see societies such as Spain's and Greece's gaining traction by reverting to a sophisticated form of barter from where the market without government intervention will decide what is needed and at what price.

Vendetta's picture

They are having a run of the bears this year ...

papaclop's picture

And the Bull does not always lose.   You'll know if the Spanish Cafe serves you really small "Mountain Oysters"

Jason T's picture

should be noted, spain GDP is $1.49 trillion in 2011

CPL's picture

100% of it government printed capital.


Not some of it...all of it.


Everyone getting the pension destroying feeling...then the evetualy run away inflation feeling?

timbo_em's picture

If we take the first chart (Exhibit 29) and apply the politically well-known hockey stick starting in August, we shall reach zero by the end of the year. So, nothing to worry about for lawmakers. 

LawsofPhysics's picture

Take the money and run, bitchez.

Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Amerika, Fuck yeah! Here to save the mother fuckin day yeah!...


This is what happens when you give weapons (aircraft carriers in the ME) to children.

GetZeeGold's picture



Here to save the mother fuckin day


Ummm.....wasn't planning on it actually. Perhaps you didn't get the memo?


youngman's picture

That money is leaving is the 1% taking their money out ...but that is why they are the 1%ers....the other people that leave their money in the Spanish banks...will lose much of their savings/wealth....but that is why they are the 99%ers..that is the facts of life...

CH1's picture

No! Not everything ties to a signle issue.

ALL the smart guys - like the ones who have a successful small business - are getting their money the hell out.

Wouldn't you?

Jim B's picture

Right on....  The dollar makes me a tiny bit nervous, but Spain.....  My money would have been gone a while ago! 

Yen Cross's picture

  Spain is starting to smell a lot like a  " Gyros Sandwich", making competition.

Son of Loki's picture

"The Wisdom of Crowds."


Who could have guessed?


Peter Pan's picture

It's quite telling that the corporates are the ones drawing out their money most.

The way these banks are going, bank robbers will be lining up for unemployment benefits before long.

SafelyGraze's picture

Last September, the ECB they were going to advance $82 billion to Spain. I was kind of surprised and said, 'Mr Draghi do you have $82 billion?' Mr. Draghi replied, '81 billion? Dude, I have $800 billion and I can lend it to whoever the hell I want to." So I'm like, "I didn't know you had that much money." I guess it's from the good investments the bank has made over the past years. 

andyupnorth's picture

Any ideas where the money is flowing into? The ECB et. al.? London & Co.?

DeFeralCat's picture

The pain in Spain is certainly not on the wane.

Snakeeyes's picture

Real GDP prints at -1.3% and a huge amount of debt matures next year. House prices continue to decline. The pain is real.

Dareconomics's picture


The chart above shows the yield of the 10 year Spanish bond, and you can apply this analysis to the rest of the PIIGS. This chart also serves as a history of the euro. The bond routinely traded at double digit figures up until the mid-90's. Then, the euro project was announced in 1995. Market participants realized that the currency risk of holding Spanish debt would cease to exist once the joint currency was introduced in 1999. In response, they bid prices up from about 12% to just over 4% in four years. Note that the traders and investors were too exuberant and there was a reversal to 6%.  The bond resumed its rally  when the euro began circulating and replacing the national currencies in 2002.

Since then, bond yields have risen from a low of just over 3% to 6.4% currently. Compared to the 90's, Spain is still financing itself at bargain rates. So what's the problem? Spain and the other Mediterranean countries got used to financing themselves at these low rates. Rather than using lower interest costs to reduce their budget deficits, they spent the extra money. Once you increase government spending, reducing it has all sorts of unintended consequences due to the multiplier effect. To wit, decreasing spending results in lower economic activity which causes lower tax revenues. This is known as the debt trap. The only way out of it is either a default or currency devaluation.

So, whenever you hear talk of this plan or that plan from the Europeans, just keep in mind that simple economics fundamentals dictate the endgame, not politicians or bureaucrats.