With Spain's new-found belief in its own incompetence omnipotence, they are now throwing bad money after bad in advance of the European bailout by pre-bailing out (bridge recap?) Bankia via the FROB (and it seems like they are in a hurry):
- *SPAIN'S FROB SAYS TO INJECT CAPITAL IN BFA-BANKIA IMMEDIATELY
which makes sense given that:
- *BANKIA GROUP BAD LOANS RATIO 11% IN JUNE VS 7.63% IN DEC. (a 44% rise!!)
- *BANKIA 1H NET LOSS EU4.45 BLN VS EU201 MLN PROFIT A YR AGO
The bottomless pit will all be 'fixed' though by October (just like Dexia was?)
- *BANKIA CHAIRMAN SAYS SPAIN, EU COMMENTS ARE `GREAT SUPPORT'
and just as jawboning helps:
- *EUROGROUP WELCOMES BRIDGE RECAPITALIZATION OF BFA-BANKIA
- *EUROGROUP SAYS BANKS BACKSTOP IN PLACE IF INTERVENTIONS NEEDED
Sublime to ridiculous... Is this just another move in the negotiation as now Spain has 'more' vested interest and therefore 'more' mutual destructive power if a banking union or mutualized benefit is not realized...
The Tragedy of the Euros - he who "prints most, deficit spends most, crashes" first wins...