SPANISH COLLAPSE: Last but one piece of the doom jigsaw about to be slotted in.

Spain, which was never going to need a ‘bad bank’ is in talks to assemble one.

The “bad bank” scheme is the latest attempt by the centre-right government of Spanish PM Mariano Rajoy, to avoid a Troika-style rescue. This rescue is that last remaining thing that Spain was never going to have that hasn’t already been had. So the end is getting nearer. 

Rajoy’s Popular Party – give him his due, it’s a great name – has deepened fiscal austerity, reformed Spain’s labour market, and ordered banks to set aside an extra €54bn of bad loan provisions and capital buffers this year. But the banks have now somewhat sheepishly come back to say that’s about a third of what they need. That’s worrying, because translating bankspeak into English, it probably means it’s about 5% of what they need.

Events today have already made thing worse for Spanish bond sales: Standard & Poor’s (S&P) Ratings Services just announced it is lowering the credit rating of 16 Spanish banks  most importantly, those of Santander, and its vital subsidiary Banco Espanol de Credito. They’ve been downgraded from A- to A-2 and A+ to A-1 respectively.

But when the markets are in a mood to think the best of a disaster, it’s amazing how much excrement you can chuck at them before they decide it tastes bad. Spain’s statistics bureau said last Friday that the country’s jobless rate rose to 24.4% in the first quarter, from 22.9% in the fourth quarter of last year; but because the recession forecast was pessimistic by 0.1%, European stocks rose.

It doesn’t take a lot to get European stocks rising these days. Thanks to all that QE and Zirp, large concerns and their bankers can buy their own shares if necessary. But 0.1% in one country about to topple over a cliff is the best bippy so far in terms of a crazy rationale for confidence. I hear there’s a donkey auction on Spetse tomorrow. Stand by for a bull market on the main Greek bourses of they sell two hind legs more than expected.



58 thoughts on “SPANISH COLLAPSE: Last but one piece of the doom jigsaw about to be slotted in.

  1. So Spain is in the pan along with Greece. Ireland, Portugal to follow, Italy and France waiting in the wings. Question….when will the banking collapse with the help of complicit governments be seen for what it is…the biggest fraud in history. When will main stream media pour these facts down the throats of the dim witted public?

  2. @kfc/@gojam:
    ISTM that is only true if the end is a known or fixed point. Then, as each month passes we are one month closer to getting there…

    But that is to underestimate the ingenuity of the EU/EZ political elites. If they kick the can down the road each time a new element of the crises appears on the table, could it not be true to say that the end is not getting closer, but further away? ha-ha.

  3. BT, the collapse of the EZ does seem like a zeno paradox at times but as the end is inevitable we’re always getting closer.

  4. Look Cavedin Dammerung says we are not even halfway through the Euro crisis yet, Spain just has to wait a while before collapsing…FFS, Dingo Dave is never wrong…..

  5. you have to remember guy’s, we’re in a cycle of deceit here ,so we’ll never reach the end. We ‘ll just go round and round and round……

  6. The Cornish use the word “directly” to mean any time between now and…..well, whenever.
    e.g. “i’ll do that directly”

  7. i think we know the crash is inevitable…it’s a matter of how fast the descent is….fast and sudden (which less than 1% has anticipated and prepared for) or a slow gradual decent thanks to central banks digital dollar counterfeiting printing to keep the system on life support….which means more people have time to get their house in order….me, I prefer a gradual descent and crash myself…i need more cash for solar panels, food, water, guns and ammo..and other needs..,

    what bothers me is how these criminals, engineering this collapse and demise of global population, think they’ll survive death. they have to come out of their hole sooner or later.

    i’m very very scared of the fukashima impact to the northern hemisphere….was this intentional?

  8. I’m in favour of a decent descent. But they never are, they are precipitous once started. What’s the Spanish for panic? Oh, sorry I already know that.

  9. The pit is full of shit that’s why it doesn’t hurt, but it can be detected by its scent..

  10. So John Ward, your thoughts on the possibility of Jim O’Neill being the next Governor of the Bank of England are?

  11. Installing an ex-Goldman Sachs implant would bring us in line with the US and the rest of the EU. So I guess it will happen. How about helicoptering in a replacement for Cameron too, while they’re at it?

  12. “That’s worrying, because translating bankspeak into English, it probably means it’s about 5% of what they need.”
    Spot on. The Spanish are in total denial as to how bad the problem really is and the numbers quoted by the government/media are nothing but blatant propaganda and f**king lies. I’d bet toxic loans to the property market are close to €1 trillion. That should be enough to make Fritz choke on his bratwurst and end any hope the EU shysters may have had of pushing through fiscal union.

  13. Exactly. This is not new news, but it certainly is important. The traditional Spanish way of trickling out bad debts with a 6 year delay won’t work this time. It will take a lot of real money to sort the problem, and plenty of time, too. Exactly what Madrid does not have.

  14. The bad debts are based on property speculation.
    The best way to pay them off is to northern European savers who want to live in Spain in the autumn of their days. Only not in Euros.

  15. Pingback: John Ward – Spanish Collapse : Last But One Piece Of The Doom Jigsaw About TO Be Slotted In – 30 April 2012 | Lucas 2012 Infos

  16. Yayyyyyy… tired of seeing them stumble about high on heroin, mugging old people, and setting fires inside the building they illegally occupy. Tired of everyone worrying about their civil rights… they are illegal invaders and as thus don’t get civil rights… what about my right to wack at night unmolested or not worry about y daughter being gang raped in one of their flop houses? (happens alot but the girls don’t like to report it). Why are people more concerned with rights of criminal trespassers than the home owners themselves?

  17. Completely off-topic, last night on French TV, was shown the body of a British man who had been de-capitated by the Taliban in Pakistan.
    I have been unable to find any mention of this in the MSM papers on-line this morning. Have you heard anything about this John? Has anyone else?
    This is not to be confused with the female hostage videoed in Kabul by Al-Quaida.

  18. It was actually on the BEEB yesterday (sunday) morning ! they even mentioned that it occurred in Pakistan and was “done by ‘the taliban’ according to a note left with the body”. Lovely morals these people have – decapitating a muslim (converted years ago) red cross worker who was only there to help ordinary muslims…..

    You have to wonder whether they get more ‘entertainment’ from either their ‘brothers’ suffering or from ‘decapitating innocents’.

  19. Sorry, off-topic, back to Greek elections – had to post this. In Sunday’s Πρωτο Θεμα newspaper, left hand page has an article about PASOK and where their former votes are going. Large photo of Veni, fat and scowling as usual, greying hair, beady little grey eyes, fist banging on the table.

    Right hand page has an advert for PASOK, where there’s a photo of a strangely different Veni: thinner, smiling, black hair, brown eyes, double chin missing, fewer moles on his face.

    I started to think maybe politicians have a photoshop gene which acts between brain and mouth, but then decided no, they’re all outright liars.

    It’s all still remarkably quiet here on the election front. I’ll try to send you some feedback from the polling station (local school) next Sunday.

  20. Alan
    It would be funny if it wasn’t so tragic, like Samaris promising to sort everything out but also proposing to let the police use water cannon. Presumably on satisfied voters.

  21. According the Guardian: Venizelos also held a series of election rallies over the weekend. He told an audience in Athens that Greece could meet its obligations without additional tax hikes, and predicted a “gradual and safe exit” from the current aid package by 2015.
    He told party supporters that the worst was now behind them:
    “We can assure Greek citizens that returning to a normal life, to normal conditions- to decency, to safety – is near. It’s almost upon us,.
    “The final countdown has already started. We have gone through the biggest chunk of a difficult and tough path. It’s the final part that is left.”
    Which I roughly translate as ‘we haven’t as yet quite robbed you blind, but give us a few more days and we most certainy will.’

  22. steviefinn , he ( Samaras ) says the saving of Greece starts on the 7th of May and i have the terrible feeling he believes it , or maybe is me that somehow think that a stupid man is more likely to be honest than a smart one ( but dangerous one , see Venizelos )

  23. Ah Venizelos, He is rapidly getting to the top of my most hated list, never thought Barroso would be toppled but, he is no longer safe in the number one spot. Even the little Gallic prick would be preferable to that beady eyed slob Venizelos, he is the epitome of a self-serving scumbag.

  24. So KFC,try as I may I cannot deduce with sufficient clarity from your previous comment what you REALLY think of Venizelos?

    Are you pro or anti Venizelos?

    Care to jump off the fence there for once?

  25. I think the central banks should give up on QE and give the money directly to the police for the purchase of more water cannons and tear gas.

  26. I believe the Irish set up a ‘bad bank’ but they still needed a bail-out, so perhaps the Spanish are just trying to put off the inevitable.

  27. Laurence: The Irish “bad bank”, or NAMA (National Asset Management Agency) was, is and will be another financial dead-weight added onto the burden of Irish taxpayers. It solves nothing except for a select handful of Irish property developers.

    Google “Fianna Fail and the Galway Tent” and you’ll understand the real intention of the Irish “bad bank”.

  28. Pingback: Spanish Collapse: Last But One Piece of the Doom Jigsaw About to Be Slotted In

  29. If you scroll down to about ¾ way there is the very graph (singular) containing three lines, one each for Greece, Ireland and Portugal.

  30. @JeM: Got it now thanks. I had to turn off all my filters for it to display. The graph comes from

  31. Time will tell if Hovis’s graph is correct? So the play continues. I repeat my question…..So Spain is in the pan along with Greece. Ireland, Portugal to follow, Italy and France waiting in the wings. Question….when will the banking collapse with the help of complicit governments be seen for what it is…the biggest fraud in history. When will main stream media pour these facts down the throats of the dim witted public?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s