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Desperate Spain Wants European Rescue Fund To Be "The Bigger The Better"

Tyler Durden's picture




 

No, there is no desperation in Spanish PM's Rajoy statement at all. The head of the economy, whose unemployment rate just soared to a ridiculous 23% in the past quarter, registering the largest drop since the Lehman collapse, pretty much made it clear that without European (read German) fiscal aid viagra, the unemployment rate may soon reach that of Chicago, only without the typo. Reuters reports that Spain favours the creation of the largest possible European financial rescue fund to prevent future crises, Prime Minister Mariano Rajoy said on Tuesday, adding that his government will meet its budget deficit target this year. "We support a rescue mechanism, the bigger the better, for it to act as a dissuading element for certain things that we've been going through lately," Rajoy told reporters after meeting his Portuguese counterpart, Pedro Passos Coelho. He said Spain will meet its budget gap goal of 4.4 percent of GDP this year. Judging by the Spanish (un)employment chart, and specifically recent trends therein, we will take the under. And the over on the Enzyte jokes.

 

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Tue, 01/24/2012 - 15:52 | 2093646 LawsofPhysics
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Spain and Portugal already negociating the terms of their default.  Hey Ireland, you want in on this (Why Ireland hasn't hung it's bankers already is beyond me, prehaps the beer is cheap)?

Tue, 01/24/2012 - 15:56 | 2093662 Irish66
Irish66's picture

You know who took huge position in Irish banks

Tue, 01/24/2012 - 15:56 | 2093666 fonzannoon
fonzannoon's picture

who?

Tue, 01/24/2012 - 16:06 | 2093707 Everybodys All ...
Everybodys All American's picture

tax payors

Tue, 01/24/2012 - 16:34 | 2093803 NewThor
NewThor's picture

Only pharoahs can fight pharaohs....

....so I've trained up some good ones.

CLICK THE LINK IF YOU LIKE THE ROCK AND THE ROLL

http://www.youtube.com/watch?v=P2YZv3Ihxlg

Tue, 01/24/2012 - 16:11 | 2093730 Irish66
Irish66's picture

Wilbur Ross

Tue, 01/24/2012 - 16:11 | 2093733 Dr. Engali
Dr. Engali's picture

My mom.   Sorry couldn't resist. You probably won't get it if you don't have kids who watch Regular Show on cartoon Network.

Tue, 01/24/2012 - 16:16 | 2093737 Texas Ginslinger
Texas Ginslinger's picture

Warren Buffett....

Tue, 01/24/2012 - 19:47 | 2094542 WhiteNight123129
WhiteNight123129's picture

The Pope

Tue, 01/24/2012 - 15:58 | 2093670 Ruffcut
Ruffcut's picture

Bigger is better,where it comes to tits. But, more than a mouthful is a waste, to some. Even truckloads of big tits can't save this shitbag scam.

Everybody can't be on welfare. This is the best plan they've got, rut roh.

Tue, 01/24/2012 - 17:36 | 2094028 VanillAnalyst
VanillAnalyst's picture

"more than a handful and you're risking a sprained thumb."

Tue, 01/24/2012 - 16:35 | 2093806 francis_sawyer
francis_sawyer's picture

Why Ireland hasn't hung it's bankers already is beyond me

They're still too busy trying to scrape O' Bama's wheel axle off their streets & haul it to the junkyard...

Tue, 01/24/2012 - 17:29 | 2094008 JenkinsLane
JenkinsLane's picture

Because "the boys" don't understand fractional reserve banking or leverage.

Tue, 01/24/2012 - 21:27 | 2094743 Buck Johnson
Buck Johnson's picture

Spain makes me laugh all the time.  Nothing is wrong but they want that bailout to be alot bigger "the bigger the better".  Spain, Italy, Portugal all the PIIGS and other countries all sound like conmen trying to get money from Germany.  They know that they will never pay and ther German people know they won't either.  The elite in Europe want the US to come in and give a couple of trillion but the US won't do it because they have the electorate to think about and also they don't have the money.

Tue, 01/24/2012 - 15:52 | 2093647 GeneMarchbanks
GeneMarchbanks's picture

Yields dropping for a welcome respite but for how long?

Tue, 01/24/2012 - 15:51 | 2093648 Manthong
Manthong's picture

Ole'!

Tue, 01/24/2012 - 16:25 | 2093777 mr_T
mr_T's picture

Squeeze some more euros like rest of them. Only a matter of time till Italy France Germany and other start begging for the helicopters to come. Default and go back to pesatas.. shit too expensive here in Madrid.

Tue, 01/24/2012 - 16:41 | 2093830 disabledvet
disabledvet's picture

Signed "the onion peeler."

Tue, 01/24/2012 - 15:55 | 2093652 SheepDog-One
SheepDog-One's picture

All is well, as long as unlimited free money continues and the peasants just accept their austerity measures (all your assets are belongs to us) without a whimper.

Tue, 01/24/2012 - 16:05 | 2093703 Derpmonger
Derpmonger's picture

Austerity should be demanded by the peasants to return to fiscal sanity. Governments should be gutted and national land and property be sold off to help pay the bills.  In fact the only government that should be left is a hefty police force to protect the property rights of the assets they just sold.

 

 

Tue, 01/24/2012 - 16:14 | 2093741 Ruffcut
Ruffcut's picture

Yep, sell the national property to all the elites, as they don't already control it.  Those who able to buy retail, would be taxed into poverty, like we are already becoming. Brilliant idea, NOT.

Tue, 01/24/2012 - 16:21 | 2093768 Derpmonger
Derpmonger's picture

I was just seeing if anyone would bite.  Looks like you are smarter than the average teatard.

Tue, 01/24/2012 - 16:44 | 2093837 disabledvet
disabledvet's picture

Whadya mean "not"? That sounds like a great idea. I STAND AT THE READY poor people!

Tue, 01/24/2012 - 15:53 | 2093656 redpill
redpill's picture

Soon they'll be running with the bull...er bond vigilantes.  Try not to get gored!

Tue, 01/24/2012 - 15:54 | 2093660 Derpmonger
Derpmonger's picture

We have useless eaters, and useless eaters that drive around and look busy all day.  People with jobs are really more of a burden on society if you think about it.  They are a waste of fossil fuels.

Tue, 01/24/2012 - 15:54 | 2093661 Cult_of_Reason
Cult_of_Reason's picture

Soros: The situation is about as serious and difficult as I've experienced in my career.

As he sees it, the world faces one of the most dangerous periods of modern history—a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether.

http://www.thedailybeast.com/newsweek/2012/01/22/george-soros-on-the-coming-u-s-class-war.html

Tue, 01/24/2012 - 16:11 | 2093726 Evil Bugeyes
Evil Bugeyes's picture

But, somehow, I'm sure he will find a way to make another fortune from the misfortune of millions.

Tue, 01/24/2012 - 16:17 | 2093755 ucsbcanuck
ucsbcanuck's picture

Correction: But, somehow, I'm sure he will find a way to make another fortune from the misfortune of millions who were stupid enough to believe that their politicians could give them German living standards for free.

Tue, 01/24/2012 - 16:37 | 2093817 francis_sawyer
francis_sawyer's picture

In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties

Yeah he should know... After all, he caused it all...

Tue, 01/24/2012 - 17:25 | 2093994 Ropingdown
Ropingdown's picture

When he says "America"  he means "NYC."  Everybody's huddling there and trying to clear out all non-PD guns.  They'll pay for the rioters to motivate the thing, clamp down, and stay on their side of the Hudson.  We should have had 33 Liberty moved a loooong time ago. 

Tue, 01/24/2012 - 15:56 | 2093664 Gavrikon
Gavrikon's picture

I am fucking sick of hearing how Germany should be throwing more good money after bad.  If I sound like a payer of German taxes who is pissed off after filing his return, well, . . .I am!

Tue, 01/24/2012 - 16:07 | 2093710 kurzdump
kurzdump's picture

YOU are, all the other German people seem to be OK with that.

Tue, 01/24/2012 - 16:11 | 2093729 Wipeout2097
Wipeout2097's picture

You hear that being said in English, don't you?

Tue, 01/24/2012 - 16:37 | 2093815 carbonmutant
carbonmutant's picture

"Tuesday, the UN’s labor body said that Germany’s policy of wage restraint in recent decades had harmed its EU neighbors and contributed to the current euro debt crisis."

http://www.globalpost.com/dispatch/news/regions/europe/germany/120124/ge...

Looks like Soros is right about the coming class war...

Tue, 01/24/2012 - 16:39 | 2093820 francis_sawyer
francis_sawyer's picture

hopefully they'll start with him...

Tue, 01/24/2012 - 15:57 | 2093668 non_anon
non_anon's picture

supersize me!

Tue, 01/24/2012 - 16:06 | 2093672 yogibear
yogibear's picture

Spain, yeah baby,  suck all the money you can from those Euro bankers!! Then default! Greek them.

A comedy for sure. Merkel and Sarkozy can do their dog an pony show on saving the Euro and stretch out the pain. Throw more banker money in the black hole.

 

Tue, 01/24/2012 - 17:19 | 2093963 disabledvet
disabledvet's picture

I've heard it "sells itself when said in Spanish" actually. "El mucho mas de la dinero de la segundo por favor. GRACIAS...un CASABLANCA!" at least that's what it said in the paper. How could the EU "el resisto"?

Tue, 01/24/2012 - 16:06 | 2093709 847328_3527
847328_3527's picture

Size does matter after all?!

Tue, 01/24/2012 - 16:07 | 2093713 ekm
ekm's picture

AND NOOOOOOOOOOOOW, IT'S ABOUT TO BE 3.15 PM.

LET'S WELCOME THE PLUNGE PROTECTION TEAM.

Tue, 01/24/2012 - 16:12 | 2093731 crawldaddy
crawldaddy's picture

PPT seen here.

http://www.thinkgeek.com/geektoys/science/981b/

basically set the bird over the buy button and take a nap, the US PPT is on it.

Tue, 01/24/2012 - 16:24 | 2093773 ucsbcanuck
ucsbcanuck's picture

Wasn't there a Simpsons episode where he set the bird over the Y button, and it almost resulted in a nuclear meltdown?

Tue, 01/24/2012 - 16:34 | 2093802 ekm
ekm's picture

And of course we will welcome them back at 9AM until 10.15AM tomorrow. That is not top of early morning SPX orgy.

Tue, 01/24/2012 - 16:35 | 2093808 ekm
ekm's picture

Correction: 9.30 til 10.15

Tue, 01/24/2012 - 16:14 | 2093739 Bam_Man
Bam_Man's picture

You (or they) were off by 4 minutes.

Buying binge began at 3:11 pm.

Tue, 01/24/2012 - 16:15 | 2093752 GeneMarchbanks
GeneMarchbanks's picture

That's called demand, you silly.

Tue, 01/24/2012 - 16:09 | 2093717 crawldaddy
crawldaddy's picture

"Tell Mr. Knuckles I'll have the money for him on thursday, I promise"

I swear its beyond sureal that nations have basically come to this.

 

Tue, 01/24/2012 - 16:11 | 2093721 Bam_Man
Bam_Man's picture

What would you expect this clown to say?

Something like "We should be able to get by without anymore of the ECB's free ponzi cash"?

Tue, 01/24/2012 - 16:17 | 2093722 Caviar Emptor
Caviar Emptor's picture

 

It's pretty simple:

It's going to be : Goodbye, Armageddon....and........-Hello, Biflation!

In every way, shape and form ECB will go down the same path as the Fed and end up amplifying the already powerful biflationary forces reverberating through the global economy. Result?  Slow to contracting growth with rising costs everywhere for everyone (and of course, fewer jobs, falling real median incomes and household net worth, plus no significant debt reduction)

 

Today's Petroplus bankruptcy should serve as yet another beautiful, picture perfect example of what happens in an economy where biflation is running away with it: even energy giants can't win (!) as margins get squeezed so hard and in every which way that they become insolvent.

http://www.bbc.co.uk/news/business-16696749

 

And the same rule applies on a macro level to all national economies, EuroZone and other Zone economies, the Anglosphere, the NATOsphere, the Petrosphere, and the Dragonsphere.  

So in summary, the medicine is worse than the illness. 

 

Tue, 01/24/2012 - 16:12 | 2093723 carbonmutant
carbonmutant's picture

"Garcia-Margallo called for a massive Europe-wide fiscal stimulus program to be coordinated by the European Investment Bank, saying that it should be on the scale of the Marshall Plan. Furthermore, he called on the European Commission to spend $120 billion euros to stimulate youth employment. Youth unemployment is 49% in Spain and well over 25% in most European nations except Germany.

Garcia-Margallo rather bluntly and spectacularly called for a debt union and the issuance of Eurobonds, saying such measures were a necessity."

http://seekingalpha.com/article/321192-italy-and-spain-launch-frontal-as...

Tue, 01/24/2012 - 16:12 | 2093736 urbanelf
urbanelf's picture

It's always a bad sign when your friend asks you for money and when you reply, "how much do you need?" they respond, "how much you got?"

Tue, 01/24/2012 - 16:14 | 2093740 youngman
youngman's picture

They will print... they will print.... they will print......they will NEVER cut their expenses enough to cover their debts and espenses...NEVER...it would be the politicians head.....bankers too....but if you just print...you blame all the problems that causes on other people...prices rise...its the greedy companies raising prices...and on and on and on....we will be at 100 trillion soon...as once the door are open...the players will have found a new game to play in...new money for a few moments is more valueable than older money....and they will play the spread...Goldman will be front and center...

Tue, 01/24/2012 - 16:15 | 2093745 Mugatu
Mugatu's picture

Spain has found the answer on how to correctly plan your deficit - If everyone in your economy either works for the government or is being paid assistance by the government then you know exectly how much income tax is going to be paid by your countrymen.

Problem solved!  Perfect central planning in motion.

Tue, 01/24/2012 - 16:17 | 2093754 crawldaddy
crawldaddy's picture

most of europe is now cousin eddie

 

http://www.youtube.com/watch?v=7Bu4MwNTJwA

Tue, 01/24/2012 - 16:17 | 2093757 carbonmutant
carbonmutant's picture

Bank of Spain forecasts contraction of 1.5%

Spain's central bank today forecast that the country, which is struggling to slash its deficit and debt, will fall back into recession this year with a contraction of 1.5%.

http://www.rte.ie/news/2012/0123/spain-business.html

Tue, 01/24/2012 - 16:28 | 2093778 Caviar Emptor
Caviar Emptor's picture

Let me shrotcut you to the answer: 

Spain nears default, will get bailed out with money being grown on the central bank money tree (and Portugal and Ireland, and Belgium, and Hungary, and Ukraine and and and). AUsterity packages will be enforced as the solution to the now even more Saturnian debt. 

Economic growth will go negative and recover to barely positive, negating the possibility of "growing out of the debt". Prices will rise and the cost of living, working, porducing and doing business will increase. 

Employment will drop further as will incomes and net worth, the tax base will shrink. Savers will be strip mined, yields will stay real-negative so that you lose money just standing still. 

More people will be on the government dole (in Spain 60% within 2 years), anyone with capital or a high-demand career will go to South America and society will go into shut down like Greece. 

And another debt crisis even larger than today's will hit every 2-3 years. 

The cycle is self-reinforcing. 

Tue, 01/24/2012 - 16:43 | 2093834 francis_sawyer
francis_sawyer's picture

Albert Pujols better renegotiate his contract again before the season starts...

Tue, 01/24/2012 - 18:41 | 2094330 catacl1sm
catacl1sm's picture

You love that biflation bible. I'm right there with ya. Soros say in The Daily Beast article that deflation would be a worst case scenario. I disagree, and so does Mises whos says that defaltion is necessary to correcth bubble and starta a REAL recovery. TPTB will fight defaltion with everything thay have, with biflation being the worst possible outcome (short a complete collapse, whis some may say will be a blessing when it finally arrives).

Tue, 01/24/2012 - 18:51 | 2094361 Caviar Emptor
Caviar Emptor's picture

You got it. They're creating the beast

Tue, 01/24/2012 - 16:30 | 2093790 DutchMadness
DutchMadness's picture

Fasten you seatbelts...We will soon pay Euro 150.000,= for a loaf of bread in Europe. Game over and reset.

 

Tue, 01/24/2012 - 16:56 | 2093883 roy10
roy10's picture

ECB backstop is far more effective than any ESM.

Tue, 01/24/2012 - 17:07 | 2093924 Carl Spackler
Carl Spackler's picture

Aparently, Spain needs more soocer/football teams to employ their masses.

Afterall, the rest of this is just a game to them as well.

Tue, 01/24/2012 - 17:09 | 2093934 youngman
youngman's picture

Just think of all the fees the insiders get to make when they print and distribute all theis cash....the bond sales with this printed money...fees galore...to be an insider is going to be very profitable...and the early money can buy the goods cheaper than the older inflated money....speed wins in an inflationary enviroment...

Tue, 01/24/2012 - 18:42 | 2094336 catacl1sm
catacl1sm's picture

Yep. The closer you are to the printing press, the better off you are. Inflation is for pleebs.

Tue, 01/24/2012 - 17:22 | 2093975 Dick Darlington
Dick Darlington's picture

The number of unemployed people in Spain is abt the same as the population in some smaller eurozone countries like Finland who are required to contribute to the bailouts. Fookin LOL! What a blessing the zEuro is and has been for the peoples of the twilightzone monetary union. U really can't make this shit up...

Tue, 01/24/2012 - 17:45 | 2094080 alwaystoolate
alwaystoolate's picture

Well, the true US unemployment close behind at around 20%....

So who is ridiculous?

Tue, 01/24/2012 - 17:55 | 2094113 yogibear
yogibear's picture

Spain, why worry you can keep coming back for more money. Just keep crying and papa Sarkozy and mama Merkel will give you billions more. 

A perpetual game of keep the crying PIIGS from crying! It's worked with Fannie and Freddie. They keep coming back for more and getting it.

If China, South America, Russa, India and the middle east are smart they will dump the US dollar and come up with their own reserve currency. The US and Europe can just end up with worthless paper which nobody wants.

The US Federal Reserve and the ECB can model their economic plan on Zimbabwe.

 

Tue, 01/24/2012 - 17:54 | 2094135 Reese Bobby
Reese Bobby's picture

There's a country called "Spain"?  Is that some kind of joke?  I suppose they speak Spanish there?  Very funny.  Ha, Ha.  Get a life.

Tue, 01/24/2012 - 18:30 | 2094302 Eally Ucked
Eally Ucked's picture

The best idea for all those countries would be for Greece to default and the governements announcing that all CDS's are null and void. What would follow would be a total sell-off in all bonds which anyway don't have any chance to be repayed.So in this simple way haircuts on all those papers would be achieved in no time. Then governements would proceed with creating new financial system and banks. Nobody ever even spent one minute on thinking where all those moneys to buy bonds came from, every single country in the world is in unrepayable debt up to their eye balls.

Money came from the thin air, created by banks, our magicians of modern time, just to earn interest on nothing they ever owned.

Tue, 01/24/2012 - 19:14 | 2094436 americanspirit
americanspirit's picture

Meanwhile the Spanish government is going after Judge Baltazar Garzon, arguably the most effective anti-corruption judge in Europe. One wonders why the Spanish government wants this particular judge out of the way at this particular time?

http://www.nytimes.com/2012/01/25/world/europe/renowned-spanish-judge-faces-charges-of-abusing-power.html?_r=1&ref=global-home

Oh, and of course the US State Dept is behind the Spanish gov't all the way, ever since Judge Garzon attempted to put the entire top Bush administration on trial for war crimes (just like he did the Chilean dictator Pinochet) a few years back. Imagine - war crimes. The nerve of the guy. One can only hope the good judge survives and goes forward toward putting Obama and his warlords on trial for crimes against humanity. Are you listening Hillary?

 

 

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