This page has been archived and commenting is disabled.

Spain's Catalonia Region Demands €5 Billion Bailout, Will Not Tolerate Conditions

Tyler Durden's picture


Beggars can once again be choosers. In other news, non-news (the Catalan bailout was announced at least two times before) is news again, and magically drives the amnesiac market all over again.

From Cinco Dias, courtesy of the always amusing google translate, which makes any news, no matter how tragic, quite hilarious without fail:

Catalonia 5,023,000 calls but will not accept the State Policies


The Catalan government today applied to join the Spanish Government Autonomous Liquidity Fund, which will borrow EUR 5.023 million, but has warned he will not accept "political conditions" to provide some resources "that are of the Catalans".


The Catalan government spokesman Francesc Homs, has stated that the Government will use these resources - the fund is endowed with 18,000 million euros to meet the budget deficit that is required (1.5% of GDP by end 2012 ) and to refinance "maturities outstanding" between now and year end.


The Catalan government has finalized this application to join the Liquidity Fund at its first meeting after the summer break.  

Needless to say, Germans, who are ultimately indirectly paying for this unconditional party, are delighted.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/28/2012 - 08:28 | 2743111 GetZeeGold
GetZeeGold's picture



Demand? Perhaps they should consider suggestioning?


There's no brown M&Ms in the green room.....I can not tolerate these working conditions!

Tue, 08/28/2012 - 08:31 | 2743127 malikai
malikai's picture

Perhaps Catalonia should pay attention to their little village Rasquera's debt solution plan, growing weed:

Tue, 08/28/2012 - 08:34 | 2743131 idea_hamster
idea_hamster's picture

Perhaps Madrid should start to consider all those seperatist and independence movements in Catalonia.

"Hmm...unconditional $5B bailout? Or maybe just 'buh-bye'"!

Tue, 08/28/2012 - 08:37 | 2743140 magpie
magpie's picture

If you can't even throw Greece out the EZ, how are they going to throw a region out of Spain

Tue, 08/28/2012 - 08:39 | 2743146 Manthong
Manthong's picture

Do they have any mines to barricade themselves with explosives in?


Tue, 08/28/2012 - 08:43 | 2743152 magpie
magpie's picture

Heh, even with a suicide pact the last times they tried to break loose they needed foreign armies to do it for them.

Tue, 08/28/2012 - 08:50 | 2743173 laozi
laozi's picture

€ 5M ? Seriously. That's nothing. I will not read any article talking about who is getting a million. Get the fuck out of here!

Tue, 08/28/2012 - 08:53 | 2743180 Stackers
Stackers's picture

Everytime I read these types of artcls. I keep having flash backs of the Blazing Saddles scene where Cleavon Little is holding a gun to his own head and threatening "Anyone moves and the nigger gets it"

Tue, 08/28/2012 - 09:44 | 2743332 cahadjis
cahadjis's picture

No, 5 billion. The dot is spanish notation for comma. 5023 million euros.


To confuse you more, "billion" in spanish means trillion.

Tue, 08/28/2012 - 09:07 | 2743236 slaughterer
slaughterer's picture

The metastases of bailouts will end all history and negativity for ever.  

Tue, 08/28/2012 - 09:53 | 2743359 caconhma
caconhma's picture

Thanks to Germany traitors-politicians, Germany will be ruined both economically and politically.

Tue, 08/28/2012 - 11:55 | 2743759 The Reich
The Reich's picture

is coming over you in the very near future.

Tue, 08/28/2012 - 08:45 | 2743158 idea_hamster
idea_hamster's picture

Expelling Greece from the Euro is like kicking an unemployed 20-something out of the parents' basement apartment -- he doesn't want to leave and the parents are conflicted.

Catalonia has a well-developed independence movement that has a 100-year-old body of literature, its own language, and growing public approval.  If Madrid even suggests that it might be OK, the Catalan idependence tide would latch onto this as a "bargain" -- and they'd be right. Catalonia gets independence; Madrid saves a $5B bailout plus all the follow-on bailouts that no one is admitting to yet.

Tue, 08/28/2012 - 08:49 | 2743171 magpie
magpie's picture

Well, if that's settled they still have to decide whether to keep the Euro or not

Tue, 08/28/2012 - 09:21 | 2743270 sessinpo
sessinpo's picture

And why would TPTB want to throw Greece out. Greece is like a fish on a hook, a hook so deep down the throat, it can't get off it. Let Greece or anyone else struggle all they want. In fact the more they struggle and borrow more, the more Greece is on the hook. More leverage later on for the central planners.


All these plans to save various countries and regions are really plans to get a stronger hold and control of those finances. That's why we have constant drama back and forth without resolution (until it can't be resolved anymore). It's like the guy that goes to the mob to borrow $10k.  A year later, you find him in debt to the mob for $100k. Eventually the mob comes and takes it all from you, your assets and your life.

Tue, 08/28/2012 - 10:29 | 2743467 ElvisDog
ElvisDog's picture

TPTB will keep Greece in the EU as long as they are able to stripmine more wealth, either real or future obligations, from Greece than the money they are putting into Greece. Simple as that. The mafia reference is appropriate, because this is "not personal, just business".

Tue, 08/28/2012 - 08:44 | 2743156 disabledvet
disabledvet's picture

You can simplistically compare this to extortion...or you can stop being an idiot for a moment and understand the "power of the center" under direct attack from the Regions. Big deal...move along sheeple!

Tue, 08/28/2012 - 13:17 | 2744062 drysafe
drysafe's picture

The thing is, Catalonia (which includes Barcelona) is the most advanced region of Spain economically (arguably more advanced than Madrid, despite what many consider an unfair, center-skewed distribution pattern for federal tax revenues).

If they lose this economic engine, the Basque region (another bright spot on the Spanish map) will probably follow and pretty soon what Madrid is going to be left with to govern will be only the perpetually poor Galicia and Andalusia.

And, politically, this is a non-starter. Spain will sooner descend into a civil war than follow an orderly split like Czechoslovakia.

Tue, 08/28/2012 - 08:26 | 2743112 maxmad
maxmad's picture

"This is the freakin Catalina Wine Mixer" 

Tue, 08/28/2012 - 09:39 | 2743316 The Chief
The Chief's picture


Tue, 08/28/2012 - 08:27 | 2743115 Jason T
Jason T's picture

give then the "soup nazi" treatment: "you want no conditions?, no bailout for you!  Next!"

Tue, 08/28/2012 - 08:27 | 2743116 malikai
malikai's picture

Just fucking pay me. Now.



Tue, 08/28/2012 - 08:28 | 2743118 maxmad
maxmad's picture

Collapse ON!

Tue, 08/28/2012 - 08:29 | 2743119 magpie
magpie's picture

You know the drill, rant around, Merkel in SS uniform, then line up at the ECB after a Draghi 'all clear'.

Tue, 08/28/2012 - 08:30 | 2743123 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

WTF - When will this Sh!t finally end,


...doing GOD's work...GS-DickinDaMuppets

Tue, 08/28/2012 - 08:30 | 2743124 Neethgie
Neethgie's picture

catalonia is a socialist hell hole, who have spent all their money now expect more..

Tue, 08/28/2012 - 09:33 | 2743300 SilverNoob
SilverNoob's picture

Exactly. Give us 5 billion or else. No conditions, blow jobs or reach arounds. 

Catalan chutzpah. Paella munching mofos.

Tue, 08/28/2012 - 12:43 | 2743936 FeralSerf
FeralSerf's picture

"Hell hole" is a mischaracterization of Barcelona.  

Tue, 08/28/2012 - 08:31 | 2743129 Chief_Illiniwek
Chief_Illiniwek's picture

Until they hold their breath, these demands cannot be taken seriously.

Tue, 08/28/2012 - 08:35 | 2743136 GetZeeGold
GetZeeGold's picture



Don't push it little mister....cause they'll totally do it!!!


Tue, 08/28/2012 - 08:33 | 2743132 Anasteus
Anasteus's picture

The original article refers to 5 million, not 5 billion as titled. 5 million is nothing, it's not worth mentioning.

Tue, 08/28/2012 - 08:36 | 2743139 Racer
Racer's picture

Can I have some 'nothing' please

Tue, 08/28/2012 - 08:54 | 2743187 ZeroAvatar
ZeroAvatar's picture

Gibs me dat.

Tue, 08/28/2012 - 08:45 | 2743159 Anasteus
Anasteus's picture

No, no, the title is ok, it's actually 5 billion. The google translator confuses comma/dot delimiter.

Tue, 08/28/2012 - 08:56 | 2743201 laozi
laozi's picture

Oh. I reacted to that too. 5M would not even pay for ONE of Berlusconis bunga bunga parties.

Tue, 08/28/2012 - 08:46 | 2743161 Non Passaran
Non Passaran's picture

Okay you moron, go to Wikipedia or somewhere and learn about decimal points in continental Europe.

Tue, 08/28/2012 - 08:49 | 2743170 Anasteus
Anasteus's picture

I am directly from Europe...

Tue, 08/28/2012 - 08:51 | 2743174 GetZeeGold
GetZeeGold's picture



No kidding? Can I have some of your free money?


Tue, 08/28/2012 - 08:58 | 2743206 laozi
laozi's picture

Stop right there Sir. You have to wait for QE3 like all the rest.

Tue, 08/28/2012 - 09:26 | 2743284 sessinpo
sessinpo's picture

That explains a lot.

Tue, 08/28/2012 - 09:42 | 2743324 cahadjis
cahadjis's picture

Shame you not knowing that 5.023 is same as 5023 in european notation. Confusing i know but it's how it is.

Tue, 08/28/2012 - 08:47 | 2743166 SAME AS IT EVER WAS

In today's "brother can you spare a bailout" world, 5 billion isn't nothing either.

Tue, 08/28/2012 - 08:56 | 2743200 Ar-Pharazôn
Ar-Pharazôn's picture

ehmmmmm perhaps you should consider to go back to school............... reading lessons especially

Tue, 08/28/2012 - 09:28 | 2743288 SilverNoob
SilverNoob's picture

No Senor, no.


The original article mentions 

"5.023 millones de euros"

The Spanish don't seem to use commas to denote thousands, but use the decimal, which is rather confusing.

That's 5.023 billion Euros. What do you think they would do with 5 million euros? 

Tue, 08/28/2012 - 08:34 | 2743133 orangegeek
orangegeek's picture

And the Euro is up again this morning. 


Insolvent countries - more bullish news.

Tue, 08/28/2012 - 08:38 | 2743143 JJSF
JJSF's picture

The core and peripheral are completely seperating

Countries like Czech Republic and Poland's currencies are getting hit when the euro gets hit.. But their economies are much healthier.. Buyying these currencies has been my thing for about 3 weeks now..

Tue, 08/28/2012 - 08:44 | 2743155 Non Passaran
Non Passaran's picture

Hmmm couldn't you make the same argument about CHF?
What are they going to do when the rest crashes? Export their way out?
(I'm lazy to check but I wouldn't be surprised of their CB's had some sort of peg to the Euro).

Tue, 08/28/2012 - 08:59 | 2743208 Ar-Pharazôn
Ar-Pharazôn's picture

CHF is pegged to the Euro at current rate of 1 Euro = min. 1.20 CHF

Tue, 08/28/2012 - 09:02 | 2743218 Ar-Pharazôn
Ar-Pharazôn's picture

as a swiss citizien i would say that if EU implodes, we will experience our baddest times since WWII

Tue, 08/28/2012 - 10:15 | 2743408 SilverNoob
SilverNoob's picture

That's so shit for the swiss. Hope you have plenty of those lil' gold and silver bars!

The Sterling(I am UK resident) and the Norwegian Krone (I hold both for fluidity) are not pegged to the Euro and the Sterling is getting yearly highs against the Euro. Who's bright idea was it to peg the CHF to the Euro?

Tue, 08/28/2012 - 08:39 | 2743144 Catullus
Catullus's picture

Catalonia, just break away from the Spanish Kingdom and default on your debts. 

Tue, 08/28/2012 - 08:44 | 2743157 doomandbloom
doomandbloom's picture

9! 9! 9!

Tue, 08/28/2012 - 10:07 | 2743391 monad
monad's picture

Mine! Mine! Mine! 

Tue, 08/28/2012 - 08:46 | 2743160 Waydown
Waydown's picture

Correction: The original article refers to 5.023 million euro. That's 5 billion anglo-saxon monedas

Tue, 08/28/2012 - 08:50 | 2743172 GetZeeGold
GetZeeGold's picture



Hell.....we can just pull that out of petty cash.


Tue, 08/28/2012 - 08:49 | 2743169 Dr. Engali
Dr. Engali's picture

The entitlement mentality runs deep in the western culture that's for sure. I'd tell them to take a flying leap,but I'm not a banker who is afraid I might take a haircut. So they will probably get the money.

Tue, 08/28/2012 - 08:56 | 2743198 SheepDog-One
SheepDog-One's picture

5 million Euro? Hell thats not even enough to keep the Fed pumping for half a microsecond.

Tue, 08/28/2012 - 08:59 | 2743209 SAME AS IT EVER WAS

The ponzo markets remind me of drug addicts looking for a reason to get high. "Oh look, the sky is blue-let's get high."

The PPI is down .00056% over last year, the Dow spikes 200 points. What fucking non-sense!

Tue, 08/28/2012 - 09:10 | 2743246 cosmictrainwreck
cosmictrainwreck's picture

"sky is blue" HA!

Tue, 08/28/2012 - 09:09 | 2743243 eddiebe
eddiebe's picture

Is it 5 million or 5 billion?

Tue, 08/28/2012 - 09:15 | 2743259 GetZeeGold
GetZeeGold's picture




Just give us whatever you got......dig's going for a good cause.


Tue, 08/28/2012 - 09:37 | 2743308 sessinpo
sessinpo's picture

You remind me of my sister.

One day she read a medical story how eating eggs was bad for you.

The next day, she read a story how eating eggs was good for you.


She then exclaimed. "Why don't they tell me what I should do? Are eggs bad for me or good for me?"


I just smiled and ignored her. I'm smiling at you.

Tue, 08/28/2012 - 09:46 | 2743339 cahadjis
cahadjis's picture

5 euros and 2.3 cents

Tue, 08/28/2012 - 09:49 | 2743346 Anasteus
Anasteus's picture

It is 5 billion, eddiebe.

Tue, 08/28/2012 - 09:25 | 2743279 Blasé Faire
Blasé Faire's picture

They've been working on Sagrada Familia for 130 years.  They just need a nudge to get it done.  The tourism it attracts will let them pay off that debt in no time!

Tue, 08/28/2012 - 09:33 | 2743299 Nussi34
Nussi34's picture

Just bomb the PIIGSF and get it over with!

Tue, 08/28/2012 - 09:35 | 2743307 TrustWho
TrustWho's picture

Here we go. People were concerned about the break-up of Europe and now the powers to be must be worried about the break-up of the European states.

THe arrogant eggheads created the Euro to reduce the possibility of another European war. Like most eggheads, their technical analysis and forecast was wrong. In fact their decision to force the Euro on the Europeans has increased the possibility of a European war. The eggheads who did this should be held accountable and at the very least, their credibility should drop to absolute zero.

Tue, 08/28/2012 - 09:52 | 2743352 Too Big 2
Too Big 2's picture

The only problem with accountability is that no one from the top down are holding anyone accountable.....The Euro has failed, the socialist policies of Europe and the USA have failed, our President has failed to lead, our attorney general, SEC, etc have have all failed to prosecute.....hell, in the midst of the worst budget deficits in the history of the planet and unemployment over 8% (as reported) we can't even agree to enforce laws which would help people who are here legally to get in California and the USA they blame the budget problems on people who pay taxes on not paying enough taxes!  Beautiful.... Accountability????? Who's on 1st?   

Tue, 08/28/2012 - 12:02 | 2743773 TrustWho
TrustWho's picture

How can good people fight a corrupted system? When the law serves corruption, choices are limited. As I wrote in Santelli's counterfeiting article:

If you want to legally counterfeit, got to be a member of Fed club,

If you want to legally steal, got to be member of TBTF bank club,

If you want to legally practice organized crime, got to be member of US/state justice clubs,

If you want to make a fortune from legal bribery, got to be member local/state/federal legislative/executive/judicial clubs.

Sorry to see the morality of our leaders be corrupted by money, but just what happens once you cross the line and become a Banana Republic.

I know all banks, all lawyers, all judges, all legislative people are not corrupt, but the good people inside these institutions must bring light to their corrupted peers. If not, they are corrupted by association.

LOOKING FOR SOLUTIONS? Tyler has an excellent solution with this transparency, but I would bet the corrupted people in power would like to shut this site down. Just speculation on my part....

Tue, 08/28/2012 - 10:26 | 2743460 Anasteus
Anasteus's picture

But I am quite comfortable with the Catalonia's decision not to tolerate any conditions. What for, after all? Should the people always pay others' bills, support screwed and corrupt policy, banking gamblers or political shell games? If one has to undergo austerity then certainly not for preserving the status quo. Catalonia has put it clearly 'Enough! It's your job to manage things. If you can waste huge money for your sharades, you'll certainly find some for people. Now go, start doing your job and don't bother us with details.'

Tue, 08/28/2012 - 11:23 | 2743659 Snakeeyes
Snakeeyes's picture

California, i mean Catalonia, should look at the macro numbers for Spain as a whole. How can they afford it?

Tue, 08/28/2012 - 13:23 | 2744080 Dareconomics
Dareconomics's picture

Catalonia Seeks $6.3 Billion From Spain Regional Rescue Fund - Bloomberg.

Spain will have to request a bailout sometime this year. The Spanish budget situation is much worse than the mainstream believes and has been steadily deteriorating all year. 

In March, the Spanish raised the target on its 2012 budget deficit to 5.8% from 4.4%:

That number was much too optimistic as we learned two months later that the budget deficit would be 6.3%:

Finally, the Spanish got the numbers right. Yea! Wine and tapas for everyone! After everyone woke up from their wine and tapas induced siesta, they realized that they had more work to do.

The budget deficit for the first half of the year was actually 4.04% (love that precision). If we double this number, we arrive at 8.1% for the year. Of course, the Spanish aren't telling us everything. The regions are expected to run a 4% budget deficit for the year, and not all of this number is included in the worsening budget deficit. Let's pretend that there is a good accountant working somewhere in the Spanish Finance Ministry who actually accounted for half of the regional debt in the projections. If that is the case, then we will only add half of the regional projected deficit to the total for a whopping 10.1% of GDP.

If you think this number is crazy, then look at its history for the year:

  • 4.4% in March raised 1.4% to 5.8%.
  • 5.8% in May raised .5% to 6.3%
  • Still 6.3% in August but running at a rate of 8.1% for an increase of 1.8%

In just about five months, the official number increased 3.7 points. That's an 84% increase or 17% a month, not compounded. If we extrapolate this figure for the last four months, we get 68%. An increase of this amount over the last four months of the year give us an actual budget deficit of 13% of GDP, so my 10.1% back of the envelope calculation is actually quite conservative.

Don't worry. This problem can easily be papered over with a bond buying program and vainglorious boasting by Super Mario.

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