The latest headline out of broke Europe, where Germany entering recession apparently benefits from a rising EURUSD even as Mario promises to print even more currency, is perfectly expected: the insolvent Spanish region of Andalusia has requested even more bailout aid. From Bloomberg:
- Spanish region of Andalusia says it is seeking more aid from Spain
- Andalusia Says Spain Must Help as Regions Shut Out of Markets
- Fund set up by central government to aid regions is only option
And what we have said all along:
- Amount for Spanish regions’ fund was “underestimated:” Andalusia spokesman says
All of this is perfectly expected. This is what we reported last week:
What may however surprise many is that as of Friday, Spain's "temporary" €18 billion regional bailout fund is now practically empty: a discovery which will hardly make any additional regions, who have so far dragged their feet in demanding a national bailout, happy with the Prime Minister's handling of Spain's creeping bankruptcy.
- Total bailout fund size: €18 billion
Bailouts already requested:
- Cataluña: €5.023 billion
- Andalucía: €4.906 billion
- C. Valenciana: €4.500 billion
- C. La Mancha: €0.848 billion
- Canarias: €0.757 billion
- Murcia: €0.528 billion
- Baleares: €0.355 billion
- Asturias: €0.261.7 billion
Bailout funding left: €0.821 billion. Oops.Those who waited in hopes things will get better: tough luck.
And as we observed last week, here is why the regional "bailout issue" is only going to get much worse.
To summarize: Spanish regions: broke; Spanish banks: broke: Spain itself: on the verge of being bailed out by Europe. => Time to buy more SPGBs.
Do now you see what happens Larry, when you keep bailing out and bailing out and bailing out insolvent entities, whose capital shortfalls are merely plugged on a one-time basis and nothing fundamentals ever changes, as they merely go broker and broker?
At some point the klepto-socio-fascist Ponzi money ends. Until then, to quote Chuck Prince: "you must keep dancing."