This page has been archived and commenting is disabled.
For Spain, The Beginning Of The End Arrives As Bank Of Spain Starts Using ELA
As we described in detail yesterday, things are going from worse to worserer as the problems in Spain - more specifically in its banking sector - are deepening as deposit flight accelerates. As the WSJ notes PIMCOs' comment: "A bank 'jog' is happening in Spain - the private sector is leaving the banking system." But the Bank of Spain isn't leaving anything to chance. The WSJ disconcertingly highlights that last month the central bank appears for the first time to have activated an emergency lending program that will enable its banks to borrow from the Bank of Spain directly, bypassing the ECB's relatively tough collateral demands.
The so-called Emergency Liquidity Assistance program is shrouded in secrecy, and the Bank of Spain won't confirm that it has been used. The Bank of Spain appears to have doled out about EUR400mm under the program, based on publicly available data. That would make Spain at least the fourth euro-zone country - following Greece, Ireland and Portugal - to use the ELA, which generally is reserved for situations when banks have exhausted all other financing options.
As we pointed out yesterday, this would appear to confirm a "full-blown bailout" is imminent, as the collateral problems mount.
and The Bank of Spain was quick to respond to this reality (with a denial):
Bank of Spain comments in e-mailed statement on WSJ report that central bank provided ELA to lenders:
Sept. 5 (Bloomberg) -- Bank of Spain says “liquidity provision to banks other than ordinary monetary policy operations represents an insignificant fraction of total lending by the Bank of Spain to financial system.”
Measures adopted to lift restrictions on interest rates on deposits is not aimed at helping banks attract deposits, central bank says
»
- 10690 reads
- Printer-friendly version
- Send to friend
- advertisements -
Can't we just fix Spain? I'm sick of hearing about Spain every freakin day!!!
but not as sick as hearing about isreal wanting to bomb iran everyday .. can't go a day without headlines about that ...
Do you see anyone bombing Iran?
New idea.....let's just focus on one problem at a time.
It's hard to work on one problem at a time while the problems are coming at us like a raunchy Japenese bukake porn. Speaking of Japan.....
Prrsonally, i have given up reading these materials on Spain, Greece etc with any sort of enthusiasm. The writing is on the wall as much today as it was last week, last month and last year. It makes no difference when the train is going to come roaring through as long as you are not on the tracks.
If you mean 'fix' as in 'neuter', then yes, we could. But it might lead to a 2nd rise of Hitler. Or Franco. Or someone equally disturbed.
Hitler and Franco, evil as they where, where brilliant and charismatic people.
I just don't see politicians like that between the current ranks.
Greedy, self profiting, clueless and without any real conviction discribes them best.
I agree. If there is a Hitler out there, we haven't seen or heard from him yet. The current crop of Euro leaders are the most incompetent, pampered, flabby bunch of self-serving bureaucrats I can imagine. One thing that made Hitler so effective was that he came from the streets and had a natural feel for the behavior of crowds. Draghu, Merkel, Hollande, and the rest don't mingle with the unwashed masses. They meet at places like Davos in facny hotels behind multiple lines of security teams.
. If there is a Hitler out there, we haven't seen or heard from him yet.
Evidently you haven't been watching the one we have closing the doors on us.
Don't be so cryptic, who are you referring to?
Yeah, if Hitler just listened to his generals - europe would be a drastically different place
only the bulls of Pamplona are juiced up in Spain; the rain has not fallen on the plains since ages.
The bankstas are suffering from extreme drought and their only issue is singing "run, run, may the devil take the hindmost!'
Spain is the new Greece. Only 15 more to go.
Only 15 more to go
The departures have once more been delayed......it appears no one counted on rain.
Spain capital flight now worse than Indonesia's in 1997.
http://www.cnbc.com/id/48891162
Banks are insolvent, again. What will the kleptocrats do? print more money for their buddies and send the taxpayer the bill?
place your bets.
remember, money printing does NOT cause inflation (and other fairytales for kids by... forbes)
http://www.forbes.com/sites/johntharvey/2011/05/14/money-growth-does-not-cause-inflation/
nice how all assumptions work in one direction.
John Harvey is an idiot. Two words for that guy "margin call". Printing paper and stacking up paper promises on your fucking desk might not be inflationary initially, but in order to do that printing you had to make implicit promises that that paper will still be able to deliver the same value in the future - FAIL.
print print print
And its deteriorating FAST. Totally skipped over worser....
hurry ... it could get more worser , or even worser than that, most worsest !
Ingenious
Great news! (from bloomberg)
James Ensley of Rocky Face, Georgia, took a $10,000-a-year job last month as a school-bus driver after almost two years of unemployment benefits ran out. While that’s a third of his prior pay as a warehouse manager, the father of two says he’s content.
“It feels great to go to work instead of having somebody tell you ‘I can’t help you,’” said Ensley, 51, whose former employer went bankrupt in the wake of the U.S. housing slump. “I miss my old job, but it is not coming back so I have to get over it.”
full stupid link: http://www.bloomberg.com/news/2012-09-04/long-term-unemployed-find-new-job-often-means-lower-pay.html
Who the hell can live on $10k/yr?
Oh I forgot, they'll just fix some CPI weightings, and suddenly you'll live the life of Riley.
and the rest of the taxpayers will pick up the tab for the his healthcare coverage, that of his family, his kids schooling (he won't pay any income tax as 10K is below the poverty line fo a single persons, let alone a family of four), plus he will also recieve a SNAP card to feed his family (family of four at 10k per year, damn straight he will have a SNAP card) - "Winning"
Totally fucking stupid, wages fucking matter!!!!
ELA = back door butt bashing of government ledger by the privista oligarchs who run with their funny money pumped into the banks, by the EFSF/ECB combinat.
So is now a good time to sell my spanish property? lol
Good as time as any I suppose.
I'LL GIVE YOU ALL THE SPARE CHANGE IN MY POCKET FOR IT!
2 euros... and 60 cents...
BUT ONLY IF IT'S A 5 BEDROOM HOUSE ON A SQUARE MILE OF LAND!
I need some "Emergency Liquidity Assistance" too... I need some butter for this popcorn.
"...things are going from worse to worserer..."
Believers of the democratic (cough) system have 2,500 years of results to suck on, this sugar coated turd has no other flavours.
Spit or swallow Statists?
Donde Esta el Ducko Tapeo?
Why won't EWP go down? I'm short waiting for Spain to crumble.
when are the Spanish riot cams coming online?
Ela Ole
Where has fiscal prudence gone in this world? They'll find ways to bypass everything. Rule of law is meaningless.
There is no reason to talk of fiscal prudence or the rule of law when the system that we have selected to facilitate our economic growth is behaving exactly as it was designed to behave. You can't get angry at the dog for eating out of the trash, it is the nature of the dog. Fiat money and fractional reserve banking... Where virtually all "money" is loaned into existence with interest attached. What the world faces now has been baked in all along.
Spanish women are becoming an ever increasingly cheap commodity. What do they call that index? The one for whores
Better we focus on the index of the political and banking classes who brought us to this point
Yet another page in the history books on the social and economic wreckage caused by this scum
I agree to an extent. This index shows a fairly sad (yet true) correlation with economic activity however.
What do they call that index? The one for whores
In the U.S. it's called the presidential poll.
No more time for games.
Break out the Incredible Hulk towels, Mario. Call it a new 'green initiative'.
The Webslinger just ain't got enough sticky to keep the money in Spain.
and another one bites and another one bites and another one bites the dust
why not call it a Mediterranean Spring?
All this good news and the futures continue to push higher......will the markets ever become "unbroken" and snap back to reality. I'd really llike to capture 200-400 handles of downside on the S&P.....
Not to mention the news from FedEx last night......
The ELA is the only thing that matters, and it is not discussed publicly. There is no limit to liquidity, and no deadlines on debt. It won't be inflation, it will be hyperinflation.
Meanwhile in Brussels:
Picture of the suspect vehicle here:
furchtbar.
just one movie clip (dante's peak 1997)
http://www.youtube.com/watch?feature=player_detailpage&v=n_c7JtDNNUo#t=53s
Worse to worserer?? Did I miss worser?
About as confusing as keeping track of Dumb and Dumber, Dumb and Dumberer, and Dumb and Dumberer To which is rumoured to be on again then off again, but seems to be playing in the EU now as I write this.
Which brings us to Bob Saget
http://www.youtube.com/watch?v=w6C9RBMCJOY
I wonder about all the money leaving Spain....and other countries for that matter....will it EVER come back...To me its 5 years of pain as things settle out with new curriencies...new regulations....work rules...work ETHICS...whatever...it will take a generation..a very fast generation...
Everything's fine.... Keep buying stock, keep shopping, keep watching the kardashians.
All I see is continued growth of assets.
Is the Bank of Spain lending in Pesetas yet?
The use of the ELA is definitely a turning point; note the list of countries that turned to it and what happened next. The mainstream media is reporting on various pieces of the Spanish situation, but it cannot connect to dots. That's what we're here for:
http://dareconomics.wordpress.com/2012/08/28/spain-will-request-a-bailout/
http://dareconomics.wordpress.com/2012/09/03/spain-is-approaching-insolv...
http://dareconomics.wordpress.com/2012/09/03/draghi-rajoy-in-game-of-chi...
It's even worse. The Spanish banks' real estate loans are still marked to fantasy.
As they are in the USSA.
All those HELOC's are coming home to roost soon.
I think you'll find that the following FIVE countries have all used ELA facilities over the past few years: Greece, Ireland, Belgium, Portugal, Cyprus
That means that Spain is the SIXTH country to use an ELA.
And incidentally that means that 35% (6/17) of the countries in the Eurozone have now used an ELA!
ha ha, ELA is the stufffff, why dont they all use it?
liquidity over solvency, makes the day.... until it doesnt
Judge court docket suspect also that most Burberry Outlet Online smoke quartz to hide their particular face and also their particular cosmetic expression, even if the cooking and witnesses of the 12th centry. According to historians, the first footprints of modern Sun shades we realize nowadays.Despite the quick goal, derivable from the connotations a couple shades of the Burberry Bags is not only intended to protect the user's face particular Monster beats by dr dre from your Sunday. Throughout the Decade, have polarized sunglasses transcended just energy and possess up to sphere of trend.Without a doubt, the Sun shades? Special artist Sun shades? typical particular rave at present. Chanel, Gucci, Bvlgari, Ron Lauren, Dior, as well as enjoy Orlando is usually only a small number of specific vintage brand names such as people are crazy about. More robust brand names such as Oakley, Burberry Outlet and also Rudy Venture of interest to some larger market? in particular, out of doors fans to consider the specific sporting activities Sun shades mentioned brand names are usually known about? But they should never assumed to be one yourself or maybe a couple of lower Burberry Sale especially pecking order about the trend.Tom sunglasses, however, should never be reasonable.
For many people, they can be far from cost-effective Louboutin Men, at the same time.Enter this kind of didn't think about having a couple of artist Cheap Christian Louboutin shades need to be left behind altogether. On the contrary, there are some thoroughly tested techniques that you'd like to buy a couple of artist Sun shades on the least expensive achievable value. A person does not have to accept the costs associated with such wonderful parts in large retailers. You can see some other retailers to Cheap North face jackets discovers a far better good deal.Several vendors are able to afford to offer Carrera sunglasses from vendors. Such vendors may have combined with falling up Christian Louboutin Outlet as an example, since only channels to sell among some, as well as the dealer.Multiple vendors can provide significant special discounts for artist Sun shades they can deliver as a result of campaigns from your supra skytop shoes MOM.As an example, Chanel Sunglasses will also give you a free pair of artist Sun shades for every 10 Deuces bought using a distinct shop go shopping. In contrast to preserve some absolutely free pair, that particular shop go shopping can easily choose to promote that in order to reduce the price tag on particular 10 Deuces and some others also cause them to become available in the market are competing.Multiple web stores manage to get their stocks and shares immediately from your brand.You'll find no middle men to settle Roberto Cavalli sunglasses. you want to find only inflict further brokerages that no scheme of things. Primary partnership involving the brand name go shopping on the Web, as a result, they are usually small, and its value can be lower.About acquiring a couple artist Christian Louboutin Heels? Perform multiple canvassing first, and also you will be amazed what good quality components can be obtained to the louis vuitton handbags make a considerably cheap.