Here Come Today's Rumors

What would a day be without recycling of tired and expired rumors out of Europe. Sure enough:

  • EFSF is to prepare a credit line for Spain in the case of need - Dow Jones
  • EFSF provisional credit line for Spain is one option according to a German newspaper

Ah, the good old EFSF, which was last summer's magical bailout mechanism which with 3-4 turns of leverage, would bring the total to €1 trillion... until the realization that there is nothing to lever, as nobody (except for Japan occasionally) wanted to put any money in it. Oh well: the rumor is good to get stocks into the green for at least a few minutes.

But at least we now know that Spain will be paying to bail out itself. Just wait until it is Italy's turn next.

Source: EFSF

Finally, here, ONCE AGAIN FOR THE CHEAP EUROCRAT SEATS, is the real math:

So €200 billion in EFSF funding capacity, and...

If a Spanish EU/IMF bailout package covered the government’s gross funding needs through the end of 2014, and included €75bn for bank recapitalisation, then it would amount to around €350bn.

At least according to JP Morgan. Last we checked €350 > €200