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Spain Goes From Bad To Worse

Tyler Durden's picture




 

Despite the world and their lemur believing that, with a self-referential EUR100 billion bailout (loan) for its banks and a ponzi guarantee scheme for its insolvent regions, all will be well and more debt fixes too much debt, Spanish 10Y yields are back near 7% and spreads over 575bps. The reason - simple - the backbone of their credit-fueled economic growth has crumbled and is now crumbling faster. As the FT reports today, Spain's housing and banking sectors continue to deteriorate, grim new government data showed Wednesday, providing the latest indication that the country's economy remains caught in a protracted recession. House prices declined at the fastest pace since the start of the crisis in the second quarter, the public ministry said, and bad loans increased for a 14th month in a row, the Bank of Spain reported. What is more worrisome is that in spite of a bank rescue plan (that is obviously tyet tto be implemented), bank deposits saw a record decline shrinking 5.75% from a year earlier. The vicious cycle of rising borrowing costs and continued economic recession prompted the International Monetary Fund earlier this week to predict that the downturn will last into next year. "This government can't decide between a good and a bad choice," Mr. Rajoy said. "This government has to choose between the bad and the even worse."

Since the EU Summit, and basically month-to-date, Spanish 10Y spreads are 100bps wider back near record wides...

 

Spanish House Prices are declining at a record pace...

and Spanish bad loans are rising at an extremely high pace and for 14 months in a row...

 

Charts: Bloomberg

 

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Wed, 07/18/2012 - 08:57 | 2627576 battle axe
battle axe's picture

Translation: Germany we need more money...

Wed, 07/18/2012 - 09:29 | 2627694 Nussi34
Nussi34's picture

Germany: "We do not have any"

Wed, 07/18/2012 - 08:58 | 2627577 Thomas
Thomas's picture

This crisis, the crisis in 07-09, and all other crises seem like Jaws. You seem to get quiet periods for no apparent reason and then you are back in a world of hurt. Not clear why the dormancy appears (except to cause max pain.)

Wed, 07/18/2012 - 09:03 | 2627602 Desert Irish
Desert Irish's picture

At least Jaws had an ending......

Wed, 07/18/2012 - 09:13 | 2627634 sdmjake
sdmjake's picture

"Smile you son-of-a-bitch!"

Wed, 07/18/2012 - 21:27 | 2630409 EatersOfTheFed
EatersOfTheFed's picture

Yes the beaches will be open and we will be giving out Spiderman towels.

Wed, 07/18/2012 - 08:59 | 2627580 TrainWreck1
TrainWreck1's picture

The only solution is real-time, continuous bailouts.

 

Wed, 07/18/2012 - 09:00 | 2627584 El Oregonian
El Oregonian's picture

Vaya con dios

Wed, 07/18/2012 - 09:52 | 2627769 Negro Primero
Negro Primero's picture

'que se jodan!'

Wed, 07/18/2012 - 08:59 | 2627587 eckart
eckart's picture

Spain getting cheaper...

Wed, 07/18/2012 - 09:00 | 2627588 francis_sawyer
francis_sawyer's picture

 "There will be growth in the spring [omit year]"

~ Chauncey Gardener

Wed, 07/18/2012 - 09:01 | 2627595 azzhatter
azzhatter's picture

Better raise taxes

Wed, 07/18/2012 - 09:01 | 2627596 doomandbloom
doomandbloom's picture

...need...more....football...

Wed, 07/18/2012 - 09:01 | 2627601 buzzsaw99
buzzsaw99's picture

No Rajoy in Mudville when he can't think outside the EU batter's box. Just lean into the next pitch with your head Rajoy, it won't hurt your pea-brain.

Wed, 07/18/2012 - 09:05 | 2627611 RobotTrader
RobotTrader's picture

Tough to say which is acting worse:

 

1) Spanish bank stocks

2) Junior gold and silver stocks

Wed, 07/18/2012 - 09:29 | 2627696 disabledvet
disabledvet's picture

BBVA? Santander?

Wed, 07/18/2012 - 09:12 | 2627617 virgilcaine
virgilcaine's picture

Coming soon to a Nation near you. It's 100 deg in NY! (undry heat) time for a  siesta.. AC and ZH and a frosty later.

Let Benwankie sweat it out at day 2 of Humphry Hawkins!

Wed, 07/18/2012 - 09:11 | 2627627 petolo
petolo's picture

Where are the NEW Conquestadors? We need some good stake builders asap. Must have banking experience.

Wed, 07/18/2012 - 09:19 | 2627655 Doubleguns
Doubleguns's picture

Actually I am thinking experience might not be a good thing looking at where all that present experience got things.

Wed, 07/18/2012 - 09:15 | 2627639 imamonkey
imamonkey's picture

Yet we're all still here ... no blood in the streets, LOL ... I guess I'm looking for something sharp & painful not a slow moving decapitation by a bunch of terrorists ...

Wed, 07/18/2012 - 09:16 | 2627642 DutchDude
DutchDude's picture

Give it a year or so and you'll be able to pick up one or two nice little houses at one of the costas for cheap! Rent it @ top rates in summer, go there for yourself in winters... better make the best out of it !

Wed, 07/18/2012 - 09:20 | 2627649 Euro Monster
Euro Monster's picture

But... but... Spain won Euro 2012... doesn't it mean that... wait... does this mean anything at all?! SHIT! I was brainwashed again...

Wed, 07/18/2012 - 09:21 | 2627663 Doubleguns
Doubleguns's picture

Switch to whiskey and avoid the coolaid. It should help considerably but as far as the blackouts, foolish stunts etc...  your on your own.

Wed, 07/18/2012 - 11:38 | 2628262 Ghordius
Ghordius's picture

nice nick, cool avatar ;-)

Wed, 07/18/2012 - 09:29 | 2627697 waldocktrades
waldocktrades's picture

Commercial traders are clearly leaning against the global ZIRP and seem intent on pressuring 30yr Treasury futures higher, having shed more than half of their position in the last six weeks.

http://commitmentoftradersanalysis.blogspot.com/2012/07/double-top-in-30...

 

Wed, 07/18/2012 - 09:50 | 2627761 Winston Churchill
Winston Churchill's picture

Getting a little bored by the slow motion train wreck.

Can't the bond traders skip Italy and go straight for La Belle France,

Wed, 07/18/2012 - 10:03 | 2627801 EmileLargo
EmileLargo's picture

If you borrow a trillion bucks and build houses no one wants to live in, how do you pay the trillion bucks back?

Wed, 07/18/2012 - 10:15 | 2627864 markar
markar's picture

Spanish real estate is still overpriced by at least 25% Nothing on the market is catching a bid. When reality sinks in, it's truly lights out for the banks there.

Wed, 07/18/2012 - 11:07 | 2628115 foodstampbarry
foodstampbarry's picture

F - it! I'm quitting my crappy job, moving back in with my parents and spending my days on the beach. Might aswell spend the last remaining days of a (somewhat) normal society enjoying myself.

Wed, 07/18/2012 - 11:26 | 2628222 F-ing Fed up
F-ing Fed up's picture

From Ralph Dillon at Global Financial Data.....  rdillon@globalfinancialdata.com

Wed, 07/18/2012 - 11:46 | 2628295 Jack Burton
Jack Burton's picture

Fucking housing! Simple, banks lend WAY to much money into the housing market, prices shoot WAY to high, everybody tries to get in even all the bad credit risks, then it all blows up when the last big fool has bought in! Then down it goes.

Jesus Christ, my cat knows a housing bubble when she sees one, but not the financial press! Idiots!

Wed, 07/18/2012 - 12:48 | 2628679 Bobportlandor
Bobportlandor's picture

Hey Girls aren't supposed to swear

Do NOT follow this link or you will be banned from the site!