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I haven't been keeping an eye on Spain other than knowing that there is 25% unemployment.

How close are we to a default like situation? Isn't Spain supposed to be asking for a bail-out by now? I have been reading a few articles on-line saying that Spain will go bust and when it does things will be worse than 2008/09.

All very well... but isn't the EU can kicking down road now a fine art that has been perfected. Or are we due for a blow-up soon?

I somehow feel Spain will be OK, too big to fail, they have a long history seen it all before, no fear. ;)

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  • 2 weeks later...

The Markets should be pleased, they rather wanted the Troika imposing restrictions, assuming we are talking EU funding?

who knows in all this bailout confusion not sure it was 5 or 6 bailouts in fact there has been so many not really sure myself wonder if anybody else wants one well do you feel lucky

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http://www.telegraph.co.uk/finance/financialcrisis/9719875/Spain-requests-39.5bn-bank-bail-out-but-no-state-rescue.html

Spain's economy ministry said it had requested the disbursement of €39.5bn (£32bn) of European funds for its banking sector, as agreed under a June rescue deal.

The money represents €37bn for its four nationalised banks - Bankia, Catalunya Banc, NCG Banco and Banco de Valencia - and €2.5bn for a so-called “bad bank”. It should be paid to the state’s banking fund by mid-December, the ministry said.

Despite the bail-out for its stricken banking sector, Spain faces speculation that it will require a sovereign rescue also. So far, its prime minister Mariano Rajoy has resisted making a decision on that count, although in an interview over the weekend he did not rule out the possibility of a rescue by the European Central Bank (ECB).

More at the link.

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Banks just the "middlemen" ?

Well, we now get a wonderful mix of 'solutions'.

Cyprus gets its banks bailed but, like Greece, at the cost of a 'Memorandum of Understanding'.

Spain wants its banks bailed with cost written off the sovereign books. (No Memorandum)

Greece wants its banks bailed at a haircut, which Ireland didn't get.

Portugal now wants a bit of what Ireland wants but didn't get . . .

Talk about plates spinning .. .

Edited by copydude
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Well, we now get a wonderful mix of 'solutions'.

Cyprus gets its banks bailed but, like Greece, at the cost of a 'Memorandum of Understanding'.

Spain wants its banks bailed with cost written off the sovereign books. (No Memorandum)

Greece wants its banks bailed at a haircut, which Ireland didn't get.

Portugal now wants a bit of what Ireland wants but didn't get . . .

Talk about plates spinning .. .

wish I understood all this stuff.

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  • 4 weeks later...

Bankia's losses far worse than expected, shares crash on Spanish bourse today:

Spain's Bankia plunges on market (AFP) – 8 hours ago

MADRID — Shares in Spain's bailed-out lender Bankia plunged on the stock market Thursday after banking authorities said it had a negative of value of 4.148 billion euros ($5.5 billion).

Shares in Bankia, which is at the heart of a crisis in the bad-loan ridden Spanish banking system, slumped 13.27 percent to 59.5 cents in morning trade.

Spain's state-backed Fund for Orderly Bank Restructuring, or FROB, said the previous day that Bankia had a negative value of 4.148 billion euros and its parent group BFA a negative value of 10.444 billion euros.

Bankia-BFA is to receive about 18 billion euros in public aid.

http://www.cnbc.com/id/100340662

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An article about Ireland but Spain got an honourable mention

While 91pc described our economy as "totally" bad, placing us in the most pessimistic tranche of Europeans, this was only slightly more pessimistic than the French (89pc) and more optimistic than the Spanish (98pc) and the Italians (93pc) who have an even grimmer view on their own economic outlook than the Irish.

Irish trust in the EU has dropped by 3pc since May, with less than one-third (29pc) considering its institutions trustworthy, compared with 57pc who do not trust them.

Despite this, it seems that we trust the EU considerably more than our own Government, with just 18pc now trusting the Fine Gael/Labour coalition (down 6pc), while 76pc do not trust the Government.

http://www.independent.ie/business/irish/67pc-want-to-keep-euro-despite-economic-crisis-3333973.html

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Spanish house prices to fall another 30%.

Jammie bar stewards. They've never had it so good!

cool.gif

http://www.telegraph.co.uk/finance/financialcrisis/9768067/Spains-house-prices-to-fall-another-30pc-as-glut-keeps-growing.html

RR de Acuña & Asociados expects home prices in Madrid, Barcelona and other major cities to fall a further 30pc in a relentless slide until 2018, but it may be even worse in sunbelt regions where 400,000 Britons either live or own homes.

Fresh losses could reach 50pc and drag on for 10 to 15 years in those places where construction ran wild during the bubble, bringing the total decline from peak to trough towards 75pc.

"The market is broken," said Fernando Rodríguez de Acuña, the group's vice-president. "We calculate that there are almost 2m properties waiting to be sold. We have made no progress at all over the past five years in clearing the stock," he said.

"There are 800,000 used homes on the market. Developers are sitting on a further 700,00 completed units. Another 300,000 have been foreclosed and 150,000 are in foreclosure proceedings, and there are another 250,000 still under construction. It's crazy."

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I haven't been keeping an eye on Spain other than knowing that there is 25% unemployment.

How close are we to a default like situation? Isn't Spain supposed to be asking for a bail-out by now? I have been reading a few articles on-line saying that Spain will go bust and when it does things will be worse than 2008/09.

All very well... but isn't the EU can kicking down road now a fine art that has been perfected. Or are we due for a blow-up soon?

Have been in Madrid the past 2 weeks and it's business as usual here. There's more graffiti than last year and I have seen the occasional demonstration mostly against privatizing hospitals. But, went to las rozas last night, an out of town high end shopping complex and I have never seen so many shoppers. Queuing up at Ralph Lauren. Couldn't park the car. And people buying not browsing. Tried to eat out, all the restaurants full and queuing for tables. I know it's Christmas but doesn't feel like Spain is on the brink or not how I imagined it would be from reading this thread.

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Have been in Madrid the past 2 weeks and it's business as usual here. There's more graffiti than last year and I have seen the occasional demonstration mostly against privatizing hospitals. But, went to las rozas last night, an out of town high end shopping complex and I have never seen so many shoppers. Queuing up at Ralph Lauren. Couldn't park the car. And people buying not browsing. Tried to eat out, all the restaurants full and queuing for tables. I know it's Christmas but doesn't feel like Spain is on the brink or not how I imagined it would be from reading this thread.

Spending up the euros before exit and devaluation time?

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Guest unfunded_liability

Spanish house prices to fall another 30%.

Jammie bar stewards. They've never had it so good!

cool.gif

http://www.telegraph.co.uk/finance/financialcrisis/9768067/Spains-house-prices-to-fall-another-30pc-as-glut-keeps-growing.html

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The article's by Ambrose Evans-Pritchard, the Telegraph's resident euro-bear/dollar-bull. Not saying there's no factual basis to the article but AEP takes every opportunity to knock the EU & trumpet the US.

Edited by unfunded_liability
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Have been in Madrid the past 2 weeks and it's business as usual here. There's more graffiti than last year and I have seen the occasional demonstration mostly against privatizing hospitals. But, went to las rozas last night, an out of town high end shopping complex and I have never seen so many shoppers. Queuing up at Ralph Lauren. Couldn't park the car. And people buying not browsing. Tried to eat out, all the restaurants full and queuing for tables. I know it's Christmas but doesn't feel like Spain is on the brink or not how I imagined it would be from reading this thread.

Isn't Madrid a bit like Londinium which is exempt from HPC and the economic downturn?

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Have been in Madrid the past 2 weeks and it's business as usual here. There's more graffiti than last year and I have seen the occasional demonstration mostly against privatizing hospitals. But, went to las rozas last night, an out of town high end shopping complex and I have never seen so many shoppers. Queuing up at Ralph Lauren. Couldn't park the car. And people buying not browsing. Tried to eat out, all the restaurants full and queuing for tables. I know it's Christmas but doesn't feel like Spain is on the brink or not how I imagined it would be from reading this thread.

I was in Madrid end of October, and certain bars, restaurants, shops etc were absolutely heaving...

seems the luxury goods market is 15% up this year! (a lot is down to tourists and exports)

luxury goods sector Spain

Spanish firms offering luxury goods and services will end the year with total sales of 4.79 billion euros ($6.3 billion), up 15 percent over 2011.

Coming against a backdrop of recession, high unemployment and declining domestic consumption, most of the gain can be attributed to exports and spending by foreign tourists, according to Cristina Martin, CEO of the industry association Luxury Spain.

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