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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Tue, 08/28/2012 - 08:01 | 2743069 GetZeeGold
GetZeeGold's picture



Is something going on in Spain?


How is it I'm just hearing about this? 


Tue, 08/28/2012 - 08:14 | 2743096 CPL
CPL's picture

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

Tue, 08/28/2012 - 08:21 | 2743103 Michael
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.

Tue, 08/28/2012 - 09:56 | 2743366 Fish Gone Bad
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.

Tue, 08/28/2012 - 14:41 | 2744328 JeffB
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.

Tue, 08/28/2012 - 10:31 | 2743471 redd_green
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.

Tue, 08/28/2012 - 08:27 | 2743114 laozi
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?

Wed, 08/29/2012 - 08:01 | 2745979 papaclop
papaclop's picture

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

Tue, 08/28/2012 - 08:02 | 2743074 BeetleBailey
BeetleBailey's picture

New names for advanced ski slope trails world-wide;


Tue, 08/28/2012 - 08:15 | 2743097 Wakanda
Wakanda's picture

España - cuatro diamantes negros

Tue, 08/28/2012 - 08:02 | 2743076 Ar-Pharazôn
Ar-Pharazôn's picture

Spain is not Uganda /sarc


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

Tue, 08/28/2012 - 08:05 | 2743083 GetZeeGold
GetZeeGold's picture



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


Tue, 08/28/2012 - 08:16 | 2743098 AG BCN
AG BCN's picture

Barcelona is bloody humid this time of year.

Tue, 08/28/2012 - 08:40 | 2743148 old naughty
old naughty's picture

...And they kill bulls as sport.

But the bulls are getting smarter.

Tue, 08/28/2012 - 08:44 | 2743154 Peter Pan
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.

Tue, 08/28/2012 - 09:52 | 2743354 Vendetta
Vendetta's picture

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

Wed, 08/29/2012 - 08:08 | 2745990 papaclop
papaclop's picture

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

Tue, 08/28/2012 - 08:03 | 2743080 Jason T
Jason T's picture

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

Tue, 08/28/2012 - 08:44 | 2743153 CPL
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?

Tue, 08/28/2012 - 08:06 | 2743084 timbo_em
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. 

Tue, 08/28/2012 - 08:07 | 2743086 LawsofPhysics
LawsofPhysics's picture

Take the money and run, bitchez.

Tue, 08/28/2012 - 08:09 | 2743088 Seorse Gorog fr...
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.

Tue, 08/28/2012 - 08:14 | 2743093 GetZeeGold
GetZeeGold's picture



Here to save the mother fuckin day


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


Tue, 08/28/2012 - 08:10 | 2743089 youngman
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...

Tue, 08/28/2012 - 08:16 | 2743095 CH1
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?

Tue, 08/28/2012 - 08:24 | 2743106 Jim B
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! 

Tue, 08/28/2012 - 08:13 | 2743092 Yen Cross
Yen Cross's picture

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

Tue, 08/28/2012 - 08:22 | 2743104 Son of Loki
Son of Loki's picture

"The Wisdom of Crowds."


Who could have guessed?


Tue, 08/28/2012 - 08:35 | 2743137 max2205
max2205's picture


Tue, 08/28/2012 - 08:40 | 2743149 Peter Pan
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.

Tue, 08/28/2012 - 08:54 | 2743192 SafelyGraze
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. 

Tue, 08/28/2012 - 09:19 | 2743264 andyupnorth
andyupnorth's picture

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

Tue, 08/28/2012 - 09:53 | 2743356 DeFeralCat
DeFeralCat's picture

The pain in Spain is certainly not on the wane.

Tue, 08/28/2012 - 11:25 | 2743662 Snakeeyes
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.

Tue, 08/28/2012 - 12:05 | 2743786 Dareconomics
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.

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