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Spain Refuses To Admit It Has A Problem

Tyler Durden's picture




 

As hope fades of an ECB-funded lift to their bonds, Spain's Rajoy and Italy's Monti skip hand in hand to a press conference where they just agreed that water is wet and the sky is blue and that:

  • *RAJOY: WE WANT BANKING UNION, FISCAL UNION SOON (and ponies)
  • *RAJOY SAYS WE ARE ASKING GREAT SACRIFICES FROM CITIZENS
  • *RAJOY SAYS SPAIN, ITALY CONVINCED ON NEED FOR BUDGET CUTS

But, as the market is indicating - no request for a bailout (why would they need that?) - and so Italian and Spanish bond yields are soaring and EURUSD is plunging further. It seems the Kubler-Ross model remains front-and-ceter with denial critical as beggars once again believe they can be choosers but the inexorable belief that they can magically grow their way out of over a decade of debt-fueled excess remains. (Spain 10Y Spread +65bps now from pre-Dragi and Italy +62bps)

 

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Thu, 08/02/2012 - 11:03 | 2672274 Neethgie
Neethgie's picture

like all good addicts, spain just cant face upto admitting it.

Thu, 08/02/2012 - 11:10 | 2672299 vast-dom
vast-dom's picture

Sprinkle unicorn tears, hopium extract, chant under a full moon and promise it all when your enemy is not looking...Magick is not to be taken lightly; Magik the dangerous endeavor as the practitioner can experience severe blowback*.

 

*Magik econ significantly more lethal than Voodoo econ.

 

Ponzi crash spell sans tears, dust, extracts and lunar cycles.

Thu, 08/02/2012 - 11:12 | 2672327 Precious
Precious's picture

Its the Moops' fault.

Thu, 08/02/2012 - 11:30 | 2672405 Hugh_Jorgan
Hugh_Jorgan's picture

For sale:

1ea  - Spanish national sovereignty, includes general public support. Some fiscal concerns, unemployment and miner (literally) civil unrest. Price very, very negotiable.

Thu, 08/02/2012 - 11:42 | 2672443 Mountainview
Mountainview's picture

Olé...it's the famous bullfighter mentality...there is no problem as long as your not on the bulls horns !!!

Thu, 08/02/2012 - 11:04 | 2672277 pods
pods's picture

I am sure the 25%+ of the unemployed youth are going to sacrifice for the banksters of Spain.

pods

Thu, 08/02/2012 - 11:08 | 2672301 crawldaddy
crawldaddy's picture

correction , Spain overall unemployment is 25%, their youth unemployment is over 50%!!

Thu, 08/02/2012 - 11:19 | 2672356 SoNH80
SoNH80's picture

Plenty more milling around the eh-squares in their eh-scarves and black windeh-breakers this winter.  "Let's go eh-window ppfhopping."

Thu, 08/02/2012 - 11:09 | 2672307 Hype Alert
Hype Alert's picture

Works the same as asking the other broke countries for bailout money so they can loan it back to them.  The bankers are just incredible.  I don't even know what to say about the public anymore.

Thu, 08/02/2012 - 11:04 | 2672278 malikai
malikai's picture

It is a human right to have a pony in every back yard.

Thu, 08/02/2012 - 11:07 | 2672293 LawsofPhysics
LawsofPhysics's picture

if that pony is for food, then you would be correct sir.

Thu, 08/02/2012 - 11:18 | 2672353 AcidRastaHead
AcidRastaHead's picture

First there needs to be a law concerning concealed ponies and "stand your barn" exemptions.

Thu, 08/02/2012 - 11:05 | 2672285 buzzsaw99
buzzsaw99's picture

they can want in one hand and poop in the other to see which fills up faster

Thu, 08/02/2012 - 11:06 | 2672287 Jim in MN
Jim in MN's picture

 

 

Flying talking scented PURPLE ponies!

Flying talking scented PURPLE ponies!

Flying talking scented PURPLE ponies!

Thu, 08/02/2012 - 11:07 | 2672296 caimen garou
caimen garou's picture

I'm not an alcoholic, i just like to drink moonshine 24/7

Thu, 08/02/2012 - 11:08 | 2672302 Osmium
Thu, 08/02/2012 - 11:08 | 2672303 surf0766
surf0766's picture

Reminds me of my mother in-law who just lost her job again. Last time she went to Florida and purchased a big screen.

 

 

Thu, 08/02/2012 - 11:09 | 2672308 Getting Old Sucks
Getting Old Sucks's picture

Question:

If the Euro dies and all countries revert back to their original currency, where will all you FX guys cash in your Euro's?

Thu, 08/02/2012 - 11:10 | 2672315 Temporalist
Temporalist's picture

That won't happen before they kick one to four countries out first.

Thu, 08/02/2012 - 11:25 | 2672389 youngman
youngman's picture

The last one standing gets to keep all the pretty EURO´s.....think of how much money they will save by not having to print a new  currency

Thu, 08/02/2012 - 11:09 | 2672310 A Man without Q...
A Man without Qualities's picture

It's a classic standoff.  Spain needs money, but it doesn't dare admit how much.  Draghi tried to pull a fast one and support them in the bond market, but the Buba has slapped him down and said he cannot do anything until they have a formal request, and an agreed MoU - i.e. show us the books.

Rajoy is up to his neck in it, his People's Party has been responsible for some of the worst overspends at regional level, which they have deliberately concealed. 

The Germans know he is speaking privately about a bailout of the order of €500 billion to cover the Kingdom of Spain, the Autonomous Regions and the banks, but he keeps pretending it is merely a banking problem and a liquidity crisis for the sovereign, whereas they are just flat out broke.

Thu, 08/02/2012 - 11:10 | 2672311 chinaboy
chinaboy's picture

From PIIGS Euro, to Nasdaq, to Knight..., nobody admits mistake.Because whatever they do, the Fed and ECB can print, then "its all taken care of".

Thu, 08/02/2012 - 11:10 | 2672312 crawldaddy
crawldaddy's picture

If you have to make a statement such as " I dont have a problem..", you assuredly ..have a problem.

Thu, 08/02/2012 - 11:11 | 2672319 mrktwtch2
mrktwtch2's picture

if the euro breaks 120 then the beasr will finally catch a break..(until the fed steps in to help euroland)

Thu, 08/02/2012 - 11:13 | 2672335 Jim in MN
Jim in MN's picture

 

Over on RAN Squawk just now: Baltic Dry Index falls 1.9% to 861.

 

Global trade seizing up.  The BDI actually set new crisis lows earlier this year, struggled back over 1100 and now appears to be breaking down again.  Deep problems under the calvalcade of sovereign debt horrors.

 

http://www.bloomberg.com/quote/BDIY:IND/chart

 

Thu, 08/02/2012 - 11:16 | 2672339 Instant Wealth
Instant Wealth's picture

 

 

  • *RAJOY SAYS "AYYY, CARAMBA"
Thu, 08/02/2012 - 11:19 | 2672364 Snakeeyes
Snakeeyes's picture

huh. So why did Spanish 10 year sovs spike to over 7% on Draghi's announcement?

http://confoundedinterest.wordpress.com/2012/08/02/ecb-follows-feds-lead...

Thu, 08/02/2012 - 11:24 | 2672382 SoNH80
SoNH80's picture

Franco-nomics:  bring back SEAT, jugos de fliper, and el cheapo condopffs on the Copffta del Sol.  And musica de la dipffcoteca muy quesa.

Thu, 08/02/2012 - 11:24 | 2672388 Hober Mallow
Hober Mallow's picture

Can't be "bullish" in Spain... they kill you!

 

Thu, 08/02/2012 - 11:37 | 2672413 Hype Alert
Hype Alert's picture

Ponies?

 

We get up at 12:00
And start to work at 1:00
Take an hour for lunch
And then at 2:00 we're done.

http://www.gifsoup.com/view/2409159/horse-of-a-different-color.html

Thu, 08/02/2012 - 11:37 | 2672424 Satan
Satan's picture

Spain Refuses To Admit It Has A Problem

" hello, my name is Spain. I ...er...I don't really have a problem, I mean I can stop anytime I like. Mainly I just like coming to these meeting for the free stuff you guys keep insisting I take...

Thu, 08/02/2012 - 11:41 | 2672438 OttoMBMP
OttoMBMP's picture

Thank you for sharing, Spain!

Thu, 08/02/2012 - 11:38 | 2672426 Haager
Haager's picture

So, Spain did get some monnie today at less than 6% - when does the next auction for spain or italy kicks in?

Thu, 08/02/2012 - 11:42 | 2672446 q99x2
q99x2's picture

The bank to go away the debt the children not make.

Thu, 08/02/2012 - 11:50 | 2672478 sodbuster
sodbuster's picture

And I want a unicorn that shoots Skittles out it's ass!!!

Thu, 08/02/2012 - 12:21 | 2672616 Bay of Pigs
Thu, 08/02/2012 - 12:26 | 2672639 Totentänzerlied
Totentänzerlied's picture

 RAJOY SAYS WE ARE ASKING GREAT SACRIFICES FROM CITIZENS

"they just agreed that water is wet and the sky is blue and that socialism means taking your money"

 

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