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Spanish Bailout To Come With Strings Attached After All

Tyler Durden's picture




 

Remember those promises about an unconditional Spanish bailout?

  • JUNCKER SAYS CONDITIONS OF AID FOR SPAIN WILL INCLUDE RESTRUCTURING PLANS

Cue #RajoyCobarde all over again, as Spain is now officially a vassal state of the EU, which in turn is an indentured slave of Germany.

 

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Mon, 06/25/2012 - 07:29 | 2557230 GeneMarchbanks
GeneMarchbanks's picture

LOL

Mon, 06/25/2012 - 07:38 | 2557238 Ghordius
Ghordius's picture

I don't know if I have to laugh at the sheer idocy of Juncker making a statement, at the effect this will have on the bots used to UK/US political statements and taking it seriously enough to trade on it or if I should (again) get mad about this "as Spain is now officially a vassal state of the EU, which in turn is an indentured slave of Germany".

< sigh > who teached you the use of the words vassal and indentured slave?

This is wrong on so many levels I don't even know where to start...

Mon, 06/25/2012 - 07:45 | 2557248 DormRoom
DormRoom's picture

300M Americans have had to sacrifice because of wall street bankers greed.  And there has been no structural reform (Dodd-Frank has been diluted to ineffectiveness)

 

Even with the LTRO and bailouts the structural problems in the EZ remain.  If they don't fix it, PIIGS will ask Germany for another bailout in a decade.

Mon, 06/25/2012 - 07:47 | 2557253 economics9698
economics9698's picture

Do you think those 10% of the GDP federal budget deficits have anything to do with the shit pile we currently find ourselves in?

You are fucking brilliant.

Mon, 06/25/2012 - 07:49 | 2557255 GeneMarchbanks
GeneMarchbanks's picture

'300M Americans have had to sacrifice because of the malpractice of 0.01% of wall street bankers.'

Nope. You haven't even begun to 'sacrifice' kid-o. You've simply spread the 2008 MBS debacle around the planet.

Mon, 06/25/2012 - 07:50 | 2557258 Ghordius
Ghordius's picture

DormRoom, the sad truth is that the lifestyle of 300m Americans has been subsidized by the exports of two decades from europe and Japan and one decade from China. Note I'm leaving the oil business out of it.

Which of course profited the top - the wall street bankers - more than the bottom - but still, you have trickle down effects, don't you?

I agree with you that Dodd-Frank has been castrated. And I agree with you that the structural problems remain - though this would be a solvable problem, if the outer context would be different. Meanwhile, it's kick the can, musical chairs and wait for Godot.

Mon, 06/25/2012 - 07:51 | 2557261 Dr. Engali
Dr. Engali's picture

Dodd- Frank was a joke to begin with. It was never meant for structural reform it does the same thing all regulation does. It helps the big and powerful get bigger while putting the squeeze on the smaller players.

Mon, 06/25/2012 - 08:01 | 2557277 jekyll island
jekyll island's picture

Dodd-Frank is a head fake.  Glass-Steagall is where the damage really occured. 

Mon, 06/25/2012 - 08:05 | 2557290 Ghordius
Ghordius's picture

+1 of course even the demolition of Glass-Steagall was just a minor damage compared with the demolition of the laws forbidding CDSs and similar derivatives

Mon, 06/25/2012 - 08:20 | 2557318 nmewn
nmewn's picture

Glass-Steagall is the heart of it...but its now a bonfire that they dance around at night and laugh.

They will never revive it...how do you say captured?

Mon, 06/25/2012 - 08:16 | 2557313 nmewn
nmewn's picture

Dodd-Frank was absolutely a joke to begin with.

Two of the most ethically challenged in DC affixing their names to a piece of legislation on bank reform, what could possibly go wrong?...lol.

It would be as if Sandusky opened a charity for adolescents...wouldn't it? ;-)

Mon, 06/25/2012 - 07:44 | 2557251 GeneMarchbanks
GeneMarchbanks's picture

'who teached you the use of the words vassal and indentured slave?'

I think you meant taught. Anyhow, it was Marx, Karl Marx. In credit expansionary episodes we are all prospering together. Now, when credit recedes then you have debtors and creditors hence vassals and slaves.

Classic US citizenism.

Mon, 06/25/2012 - 07:57 | 2557266 Ghordius
Ghordius's picture

yeah, taught. thx. no, there was pride in the word vassal, by those who used the word in earnest. it denoted a freedom of following a worthy leader. don't get me started on a rant about the european sovereign countries...

lol, are you missing our (Chinese?) AnAnonymous? ;-)

Mon, 06/25/2012 - 07:45 | 2557252 battle axe
battle axe's picture

How do you say "screwed" in Spanish?

Mon, 06/25/2012 - 08:46 | 2557370 Sudden Debt
Sudden Debt's picture

"Look Tourists!"

Mon, 06/25/2012 - 07:32 | 2557235 chinaguy
chinaguy's picture

Haw Haw!

Mon, 06/25/2012 - 07:36 | 2557237 ZeroPower
ZeroPower's picture

Wierd, no move in EURUSD or ES on the back of such rhetoric. 

We shall see...

Mon, 06/25/2012 - 07:39 | 2557241 GeneMarchbanks
GeneMarchbanks's picture

FX looks like a really poor still life painting for weeks now.

Mon, 06/25/2012 - 07:40 | 2557242 Mae Kadoodie
Mae Kadoodie's picture

Hey Rajoy, just vassel a happy tune.

Mon, 06/25/2012 - 07:41 | 2557243 lewy14
lewy14's picture

German sovereignty.

Peripheral sovereignty.

Solvency.

Pick any two.

Mon, 06/25/2012 - 07:43 | 2557250 Ghordius
Ghordius's picture

If it were so easy we would pick the first two, in a breeze. But we are not alone on this word, aren't we?

Mon, 06/25/2012 - 07:42 | 2557245 Sudden Debt
Sudden Debt's picture

sure we'll restructure...

pinky swear...

NOW GIVE US THE FREAKING MONEY YOU GREEDY FAT BASTARDS!!!

Mon, 06/25/2012 - 08:06 | 2557291 t_kAyk
t_kAyk's picture

Certainly, just hand over all that shiny yellow stuff. 

Mon, 06/25/2012 - 08:11 | 2557303 t_kAyk
t_kAyk's picture

LOL.  Gross. 

Mon, 06/25/2012 - 07:48 | 2557246 Catullus
Catullus's picture

The conditions will be that the banks (the bonds) be paid first, not the 100 bn euros of bills in arrears.  Looks like a restructuring to me...

 

If you're in Spain and the government owes you money for something, just write that off now and stop letting them write you IOUs.  They're not going to pay.  That probably includes the local utilities, telecom companies, drug companies, health care providers, etc.  It's not going to happen.

Italy is in the same situation...

http://www.4-traders.com/news/Italy-PM-Calls-For-Arrears-Fix-Before-Fisc...

They owe 70bn.  Not surprising that their Bankster PM is trying fuck the commercial arrears...

Olli Rehn, European Economic and Monetary Affairs Commissioner, said authorities in Brussels are "very concerned about the consequences of payment arrears on small and medium-sized companies."

Mon, 06/25/2012 - 07:42 | 2557247 Let The Wurlitz...
Let The Wurlitzer Play's picture

The restructuring will include pricing all of Spains long term debt at 0.

 

Mon, 06/25/2012 - 07:49 | 2557256 No Euros please...
No Euros please we&#039;re British's picture

Nein, Nein there is no string. It's how you say in Spanish, garotte?

Mon, 06/25/2012 - 08:41 | 2557358 Sudden Debt
Sudden Debt's picture

Okay! Yes Deutchland! All Okay!

 

Mon, 06/25/2012 - 07:51 | 2557260 timbo_em
timbo_em's picture

Tyler, when you say bailout, you mean credit line, right? Don't scare the voters! They will be pretty stressed out, when they realize that the super-secure saving vehicle they bought from their bank or caja turns out be some sort of junior debt. I sense trouble for Mr Rajoy.

Mon, 06/25/2012 - 07:54 | 2557263 Rusticus
Rusticus's picture

Conditions can be met, Spain hired 50K public bargaining chips last week, they'll meet Junckers -25K and raise him -5K.

Mon, 06/25/2012 - 07:56 | 2557267 mrkolice
mrkolice's picture

aaa, ok, first the carrot, then the stick

Mon, 06/25/2012 - 08:01 | 2557279 lizzy36
lizzy36's picture

So conditions and subordination?

Almost like Spain is getting a bailout.

Mon, 06/25/2012 - 08:44 | 2557367 slewie the pi-rat
slewie the pi-rat's picture

g'morning, liz_Z!

resident zH wingnuts now targeting dodd/frank (again) as best way to "fix" economy gooder;  simply elect mittens and all legislation for banking and regullation will be re-written in his first term, too!

and he will put an end to socialism too? and stimulate the economy with the "appropriate" QE! 

greatWhiteHopey or what?

well at least the goldilocksCrisisTM is coming along nicely for angela, doncha think? 

remember:  the system hasta appear unstable while the banksters simply throw a few levers behind the curtain and get all the chickenLittles out screaming at once...

then, when the proper political decisions are avoided again, it will be risk0n again! why?  b/c the sto's are oversold of course!

meanwhile, others will try to impress by noting this is just like _____ (insert favorite year, event,  Bible verse, or prophesy of what must happen here)

fuk it!  i'm goin back to bed!

Mon, 06/25/2012 - 08:43 | 2557351 bombimbom
bombimbom's picture

we all should remember that the eurozone member states know too well that the worst case scenario is still a break-up of the €, ie the one thing that would hurt anyone inside eurozone the most, especially Germany, so i guess many will be surprised how much the richest member states will reluctantly be willing to pay in order to avoid it. it will still be less than they'd lose if euro breaks up.

Germany is playing the I'll try to spend the less i can and trying to, at least, have a huge say on how the future european federation will shape. chances are this is a good thing.

BTW eurozone has to try and save euro till the first months of 2013. then AIFMD will be approved and come into play and then non-eurozone (mostly anglosaxon) hedge funds will stop their "military" offensive.

Mon, 06/25/2012 - 08:42 | 2557360 HardlyZero
HardlyZero's picture

Real estate is not an export industry, unless you assume good land will cause people to move to your country and bring their wealth.

Germany is an export based economy, and the German real estate just 'follows' as the real export economy drives German GDP.

Exports are where its at....or fiat finance as in Wall Street and London's City.

Fiat finance is in its last days.

So only Exports will be a good economy, and real estate in any pro-Export country.

Mon, 06/25/2012 - 12:04 | 2558234 covert
covert's picture

too many people have forgotten that bailouts exacerbate poverty.

http://covert.ias3.com/expose/

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