What would a day be without recycling of tired and expired rumors out of Europe. Sure enough:
- EFSF PROVISIONAL CREDIT LINE COMPROMISE BETWEEN MADRID AND BERLIN
- EFSF is to prepare a credit line for Spain in the case of need - Dow Jones
- EFSF provisional credit line for Spain is one option according to a German newspaper
Ah, the good old EFSF, which was last summer's magical bailout mechanism which with 3-4 turns of leverage, would bring the total to €1 trillion... until the realization that there is nothing to lever, as nobody (except for Japan occasionally) wanted to put any money in it. Oh well: the rumor is good to get stocks into the green for at least a few minutes.
But at least we now know that Spain will be paying to bail out itself. Just wait until it is Italy's turn next.
Finally, here, ONCE AGAIN FOR THE CHEAP EUROCRAT SEATS, is the real math:
So €200 billion in EFSF funding capacity, and...
If a Spanish EU/IMF bailout package covered the government’s gross funding needs through the end of 2014, and included €75bn for bank recapitalisation, then it would amount to around €350bn.
At least according to JP Morgan. Last we checked €350 > €200