Tuesday, Aug 26, 2008
Why Spain’s banking sector could be facing a death blow
MoneyWeek: Why Spain’s banking sector could be facing a death blow
The ECB is about to stop bailing out eurozone commercial banks, which could mean another big lender going bust. And with Spanish banks in hock to the ECB to the tune of almost €50bn, it could well be one of them.
Posted by damien @ 11:26 AM (585 views) Add Comment
4 Comments
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1. japanese uncle said...
Exactly. I can't think why it's taken the ECB so long to work out that it's storing up problems for the future.
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Exactly. So it is deliberately making the eventual disaster even more disastrous by delaying the schedule. No other reasonable interpretation.
2. plato said...
ECB cannot keep printing money. They are causing inflation and maybe even hyperinflation. A Country such as Spain had every opportunity to create a sound economy by building its own Industry and with huge aggricultural resources.
Speculating in property debt is not sound economics as all are now discovering. This sector and all its partners should not be bailed out at the expense of whole economies. The ECB have no choice if they have any sense at all.
Anyway there are far bigger problems to deal with,looming on the horizon, judging by todays International news.
3. rotten tomato said...
If Spanish banks go down, I think it will mean more trouble for UK banks, are the two not closely intertwined?
4. japanese uncle said...
One may well change his/her view towards Abbey.