Spanish Bank Borrowings From ECB Surpass Italian, As Italy Sovereign Debt Hits Record €1.95 Trillion

Tyler Durden's picture

Below we present two more charts for your rubbernecking pleasure. First, we observe the just released data showing Spanish bank borrowings from the ECB: at €287.8 billion, this was a €24 billion increase from April, €235 billion from a year earlier, and the highest ever. More importantly, as can be seen on the first chart below, for the first time since June of 2011, Spanish bank ECB borrowings increased to more than those of Italy, which at just €272.7 billion rose a mere €2 billion from April month (to a new record as well). In other words, both Italy and Spanish banks are now spurned by counterparties everywhere, but Spain's a little bit more than Italy's. Yet before Italy gloats, it bears reminding Italy that its own offsetting factor, and where it is weakest, its insane public debt, just hit a new record high of €1.95 trillion, pushing the country's debt to GDP ratio well into the 120%+ range.

Italian and Spanish ECB bank borrowings:

Italian sovereign debt:

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stocktivity's picture

7:30 am and US futures are up....hard to believe. This won't last.

Chris Jusset's picture

IT'S OFF TO THE RACES: Which country will become more of a debt-ridden disaster: Spain or Italy?

 

I'm personally rooting for Italy, but Spain seems to have taken the lead, at least momentarily.

Non Passaran's picture

I am modest, I'll be happy if either of them goes bust.
Maybe Cyprus can make us happy tomorrow so that we have something to read about till Greek election results start coming out?

Harlequin001's picture

Ok, so why doesn't the ECB just tell Italy to go swing, lend all its money to Spanish banks which can then make new loans to Italy with their super new capital ratios, which will then in turn be well capitalised to lend even more money back to Spain, and out of the profits, recapitalise Greece?

Instead of paying massive taxes on the exorbitant profits, the banks could put the 'taxes' into their own reserves and using fractional reserve banking rules, lend 10 times the 'taxes' back to the govt, which the govt would never need to repay because the 'loans' could be sold back to the ECB as now AAA sovereign debt, piece of piss this banking mularky.

So what's the problem?

RazvanM's picture

It's not going to work. Think about two thieves: they are cool to steal together from others, but deep down inside they don't trust each other to lend money. This is the reason they are asking for EURO-bonds.

EscapeKey's picture

The solution here is clearly to redefine "unemployment".

They need to take a trick or two out of the book of the BLS.

Sudden Debt's picture

actually...

it's called collecting benifits right?

collecting.... sounds like "doing something"....

doing something = work

NO MORE UNEMPLOYED!!!

ALL HEIL TO THE GLORIEUS LEADERS WHO GAVE US FULL EMPLOYMENT!!!

 

 

EscapeKey's picture

"Full employment" causes inflation

Better redefine inflation rates as well.

Oh, I see they're well ahead of us.

valley chick's picture

Quote:   Yet before Italy gloats, it bears reminding Italy that its own offsetting factor, and where it is weakest, its insane public debt, just hit a new record high of €1.95 trillion, pushing the country's debt to GDP ratio well into the 120%+ range.

 

Mamma Mia!!! 

wildsilver's picture

I'm getting whiplash from rubbernecking.

Zgangsta's picture

Meanwhile, Greek banks are up 20% today.  Wonder how I can buy some puts on Greek banks...

LongSoupLine's picture

ECB - European Crap Buoy

Sudden Debt's picture

we call that...

ROOM TO MANEUVER!

LULZBank's picture

When do Italy and Spain go into a bitch fight over bailouts?

Sudden Debt's picture

no bitchfighting over there...

just lapdances for the germans...

untill the germans viagra works off...

 

asteroids's picture

What if Italy's debt is more, much, much, more eh? Why should they be telling the truth when everyone else has been lying? Italy has been quiet. Too quiet I think.

geewhiz190's picture

10 year spain 5.85 1/31/22 bid @ 7% +

Grand Supercycle's picture

Rally warning continues...

Despite stockbears with their pre-election jitters, SPX choppy bullish daily & USDX bearish daily charts strengthen.

Significant equity / EURUSD upside & USDX retracement ahead.

http://www.zerohedge.com/news/2012-12-24/market-analysis