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Reuters: Spain In Bailout Denial

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MADRID (
Reuters
) - Spain flatly ruled out needing a bailout and said results of extra health checks on its ailing savings banks would be published next spring, as its government and central bank stepped up efforts to calm uneasy investors.
As concerns that the euro zone debt crisis could spread to the Iberian (NEIBI.NX - news) nations gripped markets, Prime Minister Jose Luis Rodriguez Zapatero said there was "absolutely" no chance Spain would need to seek outside help to manage its finances.
The country had no plans to introduce extra fiscal measures either, and investors should think twice about betting against it, he added, telling private regional broadcaster RAC1 radio: "Those who are taking short positions against Spain are going to be mistaken."

The bond market will dictate terms from here. Even the risk of a bailout will be quickly priced in and a panic is certain.

Spain is the big one--if they go the Euro will be in dire straits. Good thing this is breaking late on Friday.

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Who'd of thought CGNAO and DaddyBear were right all along. Damm if only I had bought gold when I had the chance.

You want to take a look at the FOREX for some world changing numbers--Euros and Sterling anyone?

Gold heading back below 1350 might be a buying opportunity or a good sellling op. Depends how lucky you feel. :o

If Spain goes down there is no way the Germans will bail them and we will have riots in the streets if Cameron offers them a big handout. I just returned from 10 days on the Costa Tropical and the place is dead--hardly a soul around and restaurants were empty. People looked scared with blank stares and pinched expressions on their faces.

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Should I get my cash out of Santander now?

Gordon Brown assured me it is one of the safest banks when he sold it A&L, B&B, etc.

http://www.bloomberg.com/news/2010-11-26/european-u-s-stock-index-futures-slip-on-korea-tensions-debt-concerns.html

Banco Santander SA slumped 3.3 percent, pacing a selloff in Spanish lenders.

Next door may go down Monday:

http://www.bloomberg.com/news/2010-11-26/european-u-s-stock-index-futures-slip-on-korea-tensions-debt-concerns.html

Portuguese Finance Minister Fernando Teixeira dos Santos said European Union governments can’t impose a bailout on his country even as speculation mounts that Portugal will eventually have to ask for one.

Edited by Realistbear

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MADRID (
Reuters
) The premium on Spanish government bonds over benchmark German debt hit a new euro-lifetime high on Friday, as markets targeted larger euro zone periphery states while policymakers scrambled to deny reports Portugal was being pressured to seek a bailout.

Its begun. If this keeps going they will be calling in the ECB and the IMF before next week is out.

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Credit default swaps (CDS) measuring risk on German, French and Dutch bonds have surged over recent days, rising significantly above the levels of non-EMU states in Scandinavia.
"Germany cannot keep paying for bail-outs without going bankrupt itself," said Professor Wilhelm Hankel, of Frankfurt University. "This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings."
The refrain was picked up this week by German finance minister Wolfgang Schäuble. "We're not swimming in money, we're drowning in debts," he told the Bundestag.

Is the reality that the Euro is dead and its just taking awhile for people to accept that fact? Even the Germans are talking the Euro down as if it was a done deal.

Next week might be a thrilling time to be on HPC! Corr--not arf.

Edited by Realistbear

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'can't see the point of these clowns issuing denials anymore. they've lost all credibility.

ECB - "we're not bailing out anyone". 24 hours later they announce a huge bailout fund.

Ireland - "we're not going to ask for a bailout". Oh yes you are.

Portugal... Spain... Belgium... Italy... it will be just the same.

EITHER THE EURO IS DEVALUED OR IT COLLAPSES. Take your pick. These countries cannot survive for much longer. Bailouts are just sticking plasters.

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In footballese terms:

"I am the Manager, the board have given me the full backing, I am going nowhere"

Next week gone.

So bye bye Spain.

I mean, seriously, who would ever say yes we are failing, we are in trouble, we need a bailout. Even the Irish didn't one week before they did! Of course there was the Ratner moment, but I doubt a Spanniard would be allowed to do that.

Still it will mean cheap holidays over there.

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In footballese terms:

"I am the Manager, the board have given me the full backing, I am going nowhere"

Next week gone.

So bye bye Spain.

I mean, seriously, who would ever say yes we are failing, we are in trouble, we need a bailout. Even the Irish didn't one week before they did! Of course there was the Ratner moment, but I doubt a Spanniard would be allowed to do that.

Still it will mean cheap holidays over there.

It will probably mean the end of the Euro and the collapse of the entire European banking system, including the UK's banking system.

Good.

It needs to happen, no matter how bad things will be in the short term.

Just make sure your money is out of the system in the next week or so. If the worst does not happen, you have merely been inconvenienced. If the worst does happen and your money is still in the system, you may find you have a long wait to get hold of it.

Edited by tallguy

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It will probably mean the end of the Euro and the collapse of the entire European banking system, including the UK's banking system.

Good.

It needs to happen, no matter how bad things will be in the short term.

Just make sure your money is out of the system in the next week or so. If the worst does not happen, you have merely been inconvenienced. If the worst does happen and your money is still in the system, you may find you have a long wait to get hold of it.

You think holding monopoly money will of advantage?

If the banking system fails holding bartable items I think would be better.

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MADRID (
Reuters
) - Spain flatly ruled out needing a bailout and said results of extra health checks on its ailing savings banks would be published next spring, as its government and central bank stepped up efforts to calm uneasy investors.
As concerns that the euro zone debt crisis could spread to the Iberian (NEIBI.NX - news) nations gripped markets, Prime Minister Jose Luis Rodriguez Zapatero said there was "absolutely" no chance Spain would need to seek outside help to manage its finances.
The country had no plans to introduce extra fiscal measures either, and investors should think twice about betting against it, he added, telling private regional broadcaster RAC1 radio: "Those who are taking short positions against Spain are going to be mistaken."

The bond market will dictate terms from here. Even the risk of a bailout will be quickly priced in and a panic is certain.

Spain is the big one--if they go the Euro will be in dire straits. Good thing this is breaking late on Friday.

They're only pretending to be in denial. That way they can pretend things aren't that bad and negotiate better terms for their bailout when it does happen.

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Should I get my cash out of Santander now?

Gordon Brown assured me it is one of the safest banks when he sold it A&L, B&B, etc.

If britain bails out spain we should insist on the good parts of alliance and leicester and Bradford and Bingley being returned to the UK tax payer by Santander!!!

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If Spain goes down there is no way the Germans will bail them and we will have riots in the streets if Cameron offers them a big handout. I just returned from 10 days on the Costa Tropical and the place is dead--hardly a soul around and restaurants were empty. People looked scared with blank stares and pinched expressions on their faces.

..So nothing to do with it being off peak season then?:rolleyes:

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Wow just think how bad that would be if it wasn't contained.

There is no way Ireland can pay back any bailout money, it's interest payments will cripple the economy.

Default is the only option.

Oddly enough bar the last two years interest rates of 5-8% would have been considered relatively normal. I remember we had 5.75% in 2008 not too long ago as the base rate.

Yet today a rate of 6-7-8% seems to shout Armageddon.

Hopefully investors both in the bond and stock market will start pricing in return of capital.

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You think holding monopoly money will of advantage?

If the banking system fails holding bartable items I think would be better.

If you believe that, all the more reason to get your cash out and get it exchanged for something you can barter with.

Between the three options: "cash" inside the banking system, real cash in your hands or real barterable items in your hands, "cash" inside the banking system is easily the least safe option, at least while this crisis is unfolding.

Edited by tallguy

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It's the spread over German bonds that is shocking. After all, these are denominated in the SAME currency.

In some sense, the spreads measure the possibility of break-up.

gdbr10.jpg

I understand that however it still stands that borrowing at 5% over 10 years while inflation is circa 3% officially is very reasonable no matter what rate the Germans are lent money to at.

What I don’t fully understand here now is what happens going forward. Is the west now japan and we see 10 year bonds at sub 3% for decades? do we return to some normality of 5-8% as was two years ago?

If we don’t go Japanese how are the countries now crying at 5% interest rates going to work at 8%?

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In footballese terms:

"I am the Manager, the board have given me the full backing, I am going nowhere"

Next week gone.

So bye bye Spain.

I mean, seriously, who would ever say yes we are failing, we are in trouble, we need a bailout. Even the Irish didn't one week before they did! Of course there was the Ratner moment, but I doubt a Spanniard would be allowed to do that.

Still it will mean cheap holidays over there.

Here's a scary thought. If Spain goes back to pesatas, how much would Rooney cost Barca? Assuming, say, 80 million quid. Sheez that's a lot of potatos.

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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