ralphmalph Posted June 15, 2010 Share Posted June 15, 2010 http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7831117/Spain-plays-high-stakes-poker-game-with-Germany-as-borrowing-costs-surge.html I always look forward to these. Summary Spain is being villified by Germany because Spanish banks are solvent and Germans banks are bust and the Germans want to hide the fact. Basically I agree. Quote Link to comment Share on other sites More sharing options...
indirectapproach Posted June 15, 2010 Share Posted June 15, 2010 Yah, Zis is zo Jerman. Zum peebles iz thinking ze Jermans can vin ze peece even if zey loooze ze vars. Nine. Ze Jermans can be loozing ze peece too. Remember Weimar. Pass the zossidge Otto. Quote Link to comment Share on other sites More sharing options...
EvilEdna Posted June 15, 2010 Share Posted June 15, 2010 God, that's given me the willies. Bye bye Euro Quote Link to comment Share on other sites More sharing options...
david m Posted June 15, 2010 Share Posted June 15, 2010 Sounds like complete nonsense. The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working. The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up. Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted June 15, 2010 Author Share Posted June 15, 2010 (edited) Sounds like complete nonsense. The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working. The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up. You say it is complete nonsense and then make every point that AEP made to prove his point. He says - Main Spanish banks fine -Cajas in trouble. You say the same. He says German banks full of toxic assets - you say German banks love buying dogey assets (same) Have a look at ftalphaville and there running commentary of German ban assets - they call it the German bank Asset-Berg. http://ftalphaville.ft.com/blog/2010/03/18/177361/germanys-bank-asset-berg/ Edited June 15, 2010 by ralphmalph Quote Link to comment Share on other sites More sharing options...
scepticus Posted June 15, 2010 Share Posted June 15, 2010 Basically I agree. So do i. The most toxic aspect of the current crisis is that the USA with its trillion dollar deficits and gernmay with its chronically demand and demographically challenged economy with banks exposed to PIIGS and east europe are somehow safe havens. They are not. And neither are the swiss, who have the most indebted household sector on the continent and a bank sector external debt similar to the UK but with a smaller overall economy. Until we shed ourselves of this nonsense of safe haven and recognise that there are no safe havens there is not going to be any lasting resolution to al this, which can only come via the managed default on existing liabilities. Quote Link to comment Share on other sites More sharing options...
LiveAndLetBuy Posted June 15, 2010 Share Posted June 15, 2010 Sounds like complete nonsense. The Spanish financial sector is in trouble. Not so much the big banks like Santander but the regional Casas. The property crash has wiped these guys out. These guys bought all the property valuation agents to keep up the prices and even that isn't working. The German banking sector is mostly solid. However, you'd guess that a few Landesbanks have taken a big hit since they love buyng any dodgy asset that yield more than euribor flat when swapped up. Don't worry about the Spanish Cajas. They are merging the bad ones with the good ones in order to make the bad debts disappear. Like what Gordon Brown did with HBOS and Lloyds. Quote Link to comment Share on other sites More sharing options...
indirectapproach Posted June 16, 2010 Share Posted June 16, 2010 Ack ... Gott in Himmel mine earlier post has not been deleted yet ....? Zis Convey must be in ze pay of ze ratty, rat ratsters too http://blogs.telegraph.co.uk/finance/edmundconway/100006253/can-you-guess-which-is-the-most-indebted-country-in-europe/ Or as they say, somewhere below Pinewoods, Langley, Virginia ... Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 16, 2010 Share Posted June 16, 2010 ALL the banks in Germany AND Spain are insolvent. yet none of them are. Not a lot of people know that...now, wheres Debbie Mcgee?..He he. Quote Link to comment Share on other sites More sharing options...
Guest_chris c-t_* Posted June 16, 2010 Share Posted June 16, 2010 let's not forget france... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 16, 2010 Share Posted June 16, 2010 Thank god the banking system isn't interlinked. Question is where did the banks get the money to lend from in the first place. Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted June 16, 2010 Share Posted June 16, 2010 Thank god the banking system isn't interlinked. Question is where did the banks get the money to lend from in the first place. what money Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 16, 2010 Share Posted June 16, 2010 what money The imaginary money they lent out? Quote Link to comment Share on other sites More sharing options...
CHF Posted June 16, 2010 Share Posted June 16, 2010 excellent graph if accurate. Germany and france will not get paid - simple Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted June 16, 2010 Share Posted June 16, 2010 The imaginary money they lent out? can they imagine that they didnt lend it out instead Quote Link to comment Share on other sites More sharing options...
TwoWolves Posted June 16, 2010 Share Posted June 16, 2010 This is why we refer to such events as this as a global systematic crisis. They are all in effect wedded through debt and all this rumbling about who is more stable than the other simply shows that there is still abundant misunderstanding about this. Even creditor nations like China are infected because they can't actually "spend" their "reserves" without side effects that will kill off their entire economic model overnight. Complacency, incompetence and greed have combined to completely FUBR the global economy and this is the Wiley Coyote moment before we hurtle down the cliff face with a look of terrified realisation. Brace yourself. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted June 16, 2010 Share Posted June 16, 2010 This is why we refer to such events as this as a global systematic crisis. They are all in effect wedded through debt and all this rumbling about who is more stable than the other simply shows that there is still abundant misunderstanding about this. Even creditor nations like China are infected because they can't actually "spend" their "reserves" without side effects that will kill off their entire economic model overnight. Complacency, incompetence and greed have combined to completely FUBR the global economy and this is the Wiley Coyote moment before we hurtle down the cliff face with a look of terrified realisation. Brace yourself. Funny thing is, it's often worse to be a big creditor nation in times like this. After all, we already have the German and Chinese goods - they just have out paper promises. Quote Link to comment Share on other sites More sharing options...
flapjack Posted June 16, 2010 Share Posted June 16, 2010 The pain in Spain falls mainly on ........Germany, France, Netherlands, Belgium (soon to be abolished) Greece UK etc All together now! Sorry to much sun Quote Link to comment Share on other sites More sharing options...
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