If The Spanish Bank Bailout Came To The United States...

Tyler Durden's picture

For those curious what the latest and greatest estimate of the Spanish bank bailout, which at last count was €100 billion and growing fast, would look like in US terms, here is a rough and dirty comparison of the scale we are taking about here...

  • Spanish GDP of $1.25 Trillion : US GDP of $15.5 Trillion :: Spanish Bank Bailout of $125 Billion : US Bank Bailout of $1.6 TRILLION

A trillion here... a trillion there...

Or visually:

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Transitory Disinflation's picture

Barrack Oblamer will save the day.  Chang you can bereive in.


Spain should just ebay Enrique Iglesias.

Manthong's picture

When the inevitable (but unexpected) artifact of the insane complexity that they have constructed disrupts the wrong element of the equation (that was thought to be a constant) here, you are going to need to raise that number an order of magnitude..

FreeNewEnergy's picture

Egggs-zacty what I was thinking. $1.6 trillion? Chump change. Don't you know that bankers cannot defecate comfortably unless it's into a gold-plated commode? And those ain't cheap.

Bindar Dundat's picture


Bye bye to the American Lie   ( sang to American Pie )


A long long time ago

I can still remember how

The greenback used to make me smile

And I knew if I had a chance

That I could collect alot of cash

And maybe I would be happy for a while

But then I had to buy some silver

With every dollar I’d deliver

Bad news on the Fox TV news Show

I could not take one more blow

I can’t remember if I cried

When I read about our financial suicide 

But something touched me deep inside


The day the dollar died





Bye, bye the American lie

Drove my fiat to the market but the market was dry

Them good old boys were trading hard on the buy

Bernank Singin’ this’ll be the day that you try

But This’ll be the day that it'll die !


Did you write the book of funds

And do you have faith in the Federal reserve above?

If Bernanke would  tell you to?

Now do you believe in precious metals so?

Can gold and silver save your soul?

And can you teach me how to spend real slow?




Well I know your in love with them

Cause I saw you hoarding your PM

You etc. etc, etc.


Watch the fat lady clearing her throat!



Eireann go Brach's picture

Obamas bazooka policy for Europe!....Send the Spanish some Thingamijigs!

emersonreturn's picture

100 billion for a spanish bank bailout seems questionably small when compared to jpm's squandering nearly as much gambling...surely the number combied with real estate, personal, student and business loans, as well as a degree of inevitable fx, cds gambling...must amount to more? 

cranky-old-geezer's picture



Why are all these bailouts constantly needed?

Simple, all the damn debt paper they're holding on their books is WORTHLESS !!!

...and they keep RIGHT ON loaning governments money, taking all that new debt paper on their books, and they know IT'S WORTHLESS TOO.

IT'S ALL WORTHLESS PROMISES that will NEVER be fulfilled.  Worthless promises to pay back money that will NEVER be paid back. 

All these central bank fiat currency systems are PONZI SCHEMES where entire nations of people are looted by their governments with bankers getting a piece of the action (interest on the debt).

FreeNewEnergy's picture

Governments and bankers are both in the same business: skimming, a time-honored tradition of organized crime, bless their little hearts.

The difference between how the mob and the .gov/bank syndicate operate is simple: the crime families did it behind closed doors, quietly and with some degree of gentility. Government and banks do it with impunity, out in the open, because there is nobody to challenge their authority - they are the authorities.

That ordinary Americans allow such outright theft right under their noses is a sorry statement on what we have become: a nation of docile little sheep obediently following the wishes of our leaders, to the slaughterhouse, acquiescing to their every command, out of fear that one may be singled out, brutalized, tortured and killed.

What is better? A relatively quick, excruciatingly painful death or a slow, humiliating existence of living in fear, which eventually leads to being fed into the gaping maw of totalitarian annihilation?

The answer is neither, but to steel one's resolve, stand one's ground, resist and accept whatever fate awaits.

The end result is always going to be the same. Die now or die later. The difference is that at least by resisting, one dies with one's integrity and self-esteem intact.

If we have not already met with the SHTF moment, it is coming apace, a fully-loaded freight train steamrolling over the populace.

It may never be too late to stand up, but the hour of our destruction is nigh. By this time next year the wheels of tyranny will be spinning at full speed and will not be easily be slowed.

Go ahead, keep playing along, quietly paying your mortgages, taxes, interest and fees, your "tribute" to the liars, thieves and robber barons of the day. We can already see where that has gotten us, to the situation which is today.

The future will be much, much worse.


Eireann go Brach's picture

Sorry double post... Why does ZH never cover anything Peter Schiff says? He also believes the US is going to implode soon!

Dead Canary's picture

As much as I admire Peter Schiff, he won't come out and admit the the metals market is manipulated. I don't blame him. He has a business to run. And he doesn't want to come off sounding like a tin foil hat wearing conspiracy theorist nut sack like the rest of us.

TWSceptic's picture

There is nothing to 'admit'. There is not enough hard evidence, so smart people will never say anything they can't prove.


It has nothing to do with his business, he's just not a conspiracy theorist. And please speak for yourself, I'm not a nut sack nor do I believe all that hogwash.

Zola's picture

That's nothing come on! Just one year of deficits. Surely MDB will explain to us that this is great and we can postopone the problem like this for another year ?!! Of course this will work as long as they can print money, but the people being sheeps love to fund the tools of their enslavement and will happily accept USDs until some later time in the future when all the wealth has concentrated in the top 0.0001%. Idiots.

Matt's picture

According to hte article "The Spanish Cross Of Forbearance" the actual amount is likely $400 Billion, which is more like $6 Trillion when compared to America.

They should just bring out the bazooka and inject 1 Trillion euros into Spain, just to make sure the problem is solved once and for all, instead of going with half-measures and dragging this out for years.

jeff montanye's picture

look at japan.  this technique is ineffectual.  it will always drag out for years.  japan is working on its twenty second year of zombification.  only real reorganization through bankruptcy works.  the counterparties must know who is truly solvent and who isn't.

azzhatter's picture

and I might add, Japan actually produces something other than suntans for northern Euros like spain. 

Oh regional Indian's picture

Spaniard's suffer under one grand delusion.

That all they REALLy need to do in life is to look Haughty and Sexy.


Peter Pan's picture

The answer is innovation. Calcultors once upon a time had only one zero and eventually over time we now have a single button with three zeroes. This crisis can only be solved sooner with a six zero button.

This whole fiasco is travelling both to quickly and too slowly. Too quickly for politicians to react and too slowly for people who are subjected to a slow economic death.

Papasmurf's picture

Faster if you use scientific notation.

deagle44's picture

We already had that bailout a few years ago.

disabledvet's picture

There was fear expressed by Minority Leader McConnel at the time that the "bailouts" (the Troubled Asset Relief Program of TARP) were in fact on their way to becoming an actual Federal Program. http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
Given what happened to the US dollar, the economy and the current state of debt and deficit my guess would be "that was a one shot deal." In other words "the current borrowing of 100 billion a week" or there abouts is the current "form of bailout." As measured by an interest rate it appears to be working. Obviously in absolute dollar amount terms "we are failing." Of course "what is debt sustainability again"? Is it a percentage of GDP? Or "the enforcement of a political will"? It has been argued that the United States is basically ungovernable. I'm not sure i agree with that sentiment. Does seem a WEE bit on the expensive side tho.

Winston Churchill's picture

Mere seedcorn.

Now they need the whole fucking harvest.

Nid's picture

But how does it look in terms of zeee geerrmans?

Desert Irish's picture

This - Hitler discovers Spain needs a bailout


apologies to the original poster


trebuchet's picture

Germany sees political union on the cards.


They dont want blackmail from their european partners so inevitably will seek "EU political oversight".


Welcome to the birth of the (6th?) Weimar Republik. 


Greece, Portugal, Ireland, small states not a big issue. 

Spain, that is a BIG issue. 

The money is NOT a big issue ($100bn - is peanuts today), it is the politics and integration of Europe that has to be fixed and is at stake. 

Merkel has identified this and let us be ABSOLUTELY Clear - her solution is leading to a German led - EU federal state system. 






walküre's picture

Take it from this Kraut.

Germans DO NOT WANT TO BE JOINED BY THEIR HIPS to every other European nationals.

The common currency was a mistake as it turns out. You CANNOT TRUST the accounting of your own government, let alone the accounting from other governments. That is what this boils down to.

It was UTOPIA, it was done right after the unification between West and East and Germans barely had a chance to understand the deal and the ramifications from it.

END THE EURO NOW will be the new movement sweaping across Europe.



Imagine there's a war and nobody shows up? We're being dragged into a war as we speak. We should decide not to show up.

magpie's picture

I don't know where this talk of war keeps on coming from. Is Greece gonna invade - granted they have all kinds of modern hardware. The most i could imagine is that Cameron or Obama slaps German products with a tariff or something. Even if i believe that Hollande is stupid, will he send the French Foreign Legion to Frankfurt and take German bankers hostage ?   

Oh regional Indian's picture

ME and North African Pots being furiously stirred. + EU's tinderbox being marginalized, ghettoized immigrants from ME and North Africa =


Potent Brew.


magpie's picture

Yes, the wider arena of Geopolitics. But i was talking about the prospects of Post-Euro inter-European war being thrown around.

walküre's picture

I'm not talking about "war" in the sense of military action from both sides.

The enemy of Germany's finances is standing at the door and demanding access to her treasury. If that's not a declaration of financial warfare, I don't know what is.

Germany can retreat, regroup and reemerge with her own currency and stronger economic foundations.

Just close the door on the bankers and say that we're no longer interested to working for them. Sure, exports may suffer a bit. But to keep financing the exports against zero collateral and zero repayment is plain stupid.

Needs to be investigated how it ever came to be that a currency was formulated and introduced between nations of a common union without introducing a common finance ministry and taxation first. I tell you whay that was done. Had they tried to get Europeans to accept a common finance ministry and common treasury, giving up sovereignty in the process... they would have been laughed at and it wouldn't have happened.

So, now we realize we've been all sold down the river and given a ruse. Time to find out who is responsible and if that means, we have to take over government and oust a number of people from power, so be it. Wouldn't be the first time and won't be the last time. The rot is deep.

trebuchet's picture

I can see your point. Expressed in this article as well:




(following a repy to one of my earlier posts i have increased my reading of german viewpoints... )  


So let get this right, Germany exits Euroland. it is STILL joined to the hips with its negihbours only now it is in a much more messy situation and has no control over its main export markets and external influences. 

so it has three options :

a. isolationist - get hammered economically, revert to internal markets, let the economy shrink/rise as neighbouring states, 

b. dick on everyone via war (been there, done that, hasn't worked since the days of the holy Emperors)

c. sit them around the table and tell them how to behave and what they can and cannot do through a system of sticks and carrots called the EU. 


Option c is looking like the best choice right now, only choice........ MErkel just got to figure out a way to sell it to the kids back home


The bailouts just became about the future of EUROPE (sorry germany cant just float away) 


kraschenbern's picture

Economic competition; War by other means???

FL_Conservative's picture

Trouble with Trillions.

falak pema's picture

not counting derivative bubble trouble, that is just the balance sheet debt....

The Big Ching-aso's picture



"CTRL-P is what the world needs."

B.S. Bernanke

jeff montanye's picture

how can it be i just noticed his initials??  what a moron am i!

The Big Ching-aso's picture



Sometimes the obvious is the hardest thing 2 see.

derek_vineyard's picture

bernanke said 'a trillion here a trillion there' before congress on thursday when mocking the politicians for their lack of enacting any policy (and basic overall stupidity)

RobotTrader's picture

Are you kidding?


Right now, the 10-yr. yield would have to rally over 600 b.p. to match the heights reached when the economy was booming and the Nasdaq was trading at 5,000.

And, the Fed would have to raise the Fed Funds rate 25 b.p. 24 times to get the FF rate back up to 6%.

I say we print more.

Nobody will care about a 6% 10-yr. Treasury yield and a $20 trillion deficit when the Dow is at 19,000 and unemployment rate has dropped to 4%.

By that time, we will be seeing massive inflows into equity funds and a slow drain out of fixed income.

Of course, the slightest whiff of a stock market correction along the way will cause an immediate and instantaneous knee jerk reaction of "fleeing back into Treasuries", thus checking the decline.

I vote for Krugman as the next Fed Chair after Bernanke retires in January.

jimmyjames's picture

Nobody will care about a 6% 10-yr. Treasury yield

And, the Fed would have to raise the Fed Funds rate 25 b.p. 24 times to get the FF rate back up to 6%


Oh really and what happens if the long bond says FU to Bernanke like it did to Greenspan?



skepticCarl's picture

That's kind of RT's point, Jimmy.  Interest rates will stay low for a long time, that's why the expectation that the Fed will continue to print.  The Bond Vigilantes have disbanded, probably joined Lefty and headed for O Hi O.

jimmyjames's picture

That's kind of RT's point, Jimmy.  Interest rates will stay low for a long time,


Yes i suspect they would-but if they raised the FFR to his 6% target and the long end refusing to budge from here-would end the banks lucrative spread game and they would be unable to borrow at zero and buy LB's-

HoofHearted's picture

One problem is sticky wages. Sure, you can inflate your way out of the economic problem, but then you've got a whole new political and survival problem when the serfs can't afford to eat because their wages are stuck in pre-hyperinflation mode while everything they need is reealllllly ridiculously expensive, as in Zimbabwe dollar expensive...

disabledvet's picture

Just a simple matter of throwing California, Texas, Florida, Illinois and Rhode Island under bus that's all! I say GO FOR IT!

walküre's picture

Robot, honestly dude. Do some math. More printing will deliver DOW 19,000 - who cares? Unemployment will still be 9% or more.

More easing or twisting or whatever they do, is not bringing the economy back and creating jobs. All it does accomplish is digging a deeper hole.

When you're in a hole and you're trying to get out, the first thing you must do is to stop digging.

So, kiss your freakin' equity bubble good-bye once and for all and take the bitter medicine that needs to be administered to the patient.


However, with whatever means, with or without the spilling of blood. Preferably without but the elite may not give us any other choice.

jeff montanye's picture

think we see dow 3000 before we see 19,000.  the extreme bubble valuations of the late '90's were unique in history (dwarfing '29).  it was the supercycle top.  head and shoulders now fully drawn.  as stocks went up in the late '90's, so they go down in the next three years.

walküre's picture

For sure. QE is not coming back. Bernanke points to a fiscal cliff and basically suggests that it's governments responsibility to look after their own finances. That's the common theme recently. Lagarde (IMF) telling the Greeks to figure it out and start paying taxes for example.

Private bankers bought the debt of nations which makes them the owners of nations! If nations cannot repay the debt to the private bankers, the bankers will ask for collateral. This is the strategy all along.

The FED is now going for the jugular. And Americans thought the candy man would never stop giving out freebies? ts ts...

Our only chance is to take the country back by whatever means and kick the bankers to hell. Start independent investigations and oust every politician that's close to the banks and has taken bribes from the banks. The private bank is our enemy and all the politicians that work for or on behalf of this private bank are enemies.

The movement needs to be clearly articulated and work within the confines of the American constitution. There are stipulations where government can be superceded by the people when government is out of control. Government is not just out of control it is corrupt to the core.

People need to pick up their pitchforks is the bottom line.

Overfed's picture

Even if you buy the gov't's U6 numbers, real unemployment is over 15% and will be for a long time. If you start counting people who decided to just go on disability because they can't/won't find a job, that number gets a whole bunch bigger.