Spain faces 'total emergency' as fear grips markets

[JJ.G0ldD0t]

Spain is facing the gravest danger since the end of the Franco dictatorship as the country is frozen out of global capital markets and slides towards an epic showdown with Europe.



By Ambrose Evans-Pritchard (http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/), International business editor7:39PM BST 30 May 2012

For the latest on the eurozone debt crisis read our live blog (http://www.telegraph.co.uk/finance/debt-crisis-live/9301285/Debt-crisis-live.html)

“We’re in a situation of total emergency, the worst crisis we have ever lived through” said ex-premier Felipe Gonzalez, the country’s elder statesman.

The warning came as the yields on Spanish 10-year bonds spiked to 6.7pc, pushing the “risk premium” over German Bunds to a post-euro high of 540 basis points. The IBEX index of stocks in Madrid fell 2.6pc, the lowest since the dotcom bust in 2003.

Chaos over the €23.5bn rescue of crippled lender Bankia has led to the abrupt resignation of central bank governor Miguel Ángel Fernández Ordóñez, who testified to the senate that he had been muzzled to avoid enflaming events as confidence in the country drains away.

Markets are on tenterhooks as Spanish yields test levels that forced the European Central Bank to respond last November with its €1 trillion liquidity blitz. “Nobody is short Spanish debt right now because they are expecting ECB intervention,” said Andrew Roberts, credit chief at RBS. “If it doesn’t come -- if we take out 6.8pc -- we’re going to see a hyberbolic sell-off,” he said.




Story continues

http://www.telegraph.co.uk/finance/financialcrisis/9301270/Spain-faces-total-emergency-as-fear-grips-markets.html

[Horn]

Was reading about this in paper here last night, they said it was the 23rd straight month that retail prices have dropped there.

If Europeans had enough for the gas bill you'd think they'd go shopping there..

[chad]

i remember shopping barcelona around 2003 or so. pair of jeans was something insane like $80 for a generic brand.

[Horn]

i remember shopping barcelona around 2003 or so. pair of jeans was something insane like $80 for a generic brand.

Could the price be much different in France?

I mean aren't they just one big happy bloque?

[osoab]

A few stories from ZH. I like the last one especially.

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Spanish CDS Over 600bps Sends S&P Under 1300 (http://www.zerohedge.com/news/spanish-cds-over-600bps-sends-sp-futures-under-1300)
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Spain: Bankia Down, Who Is Next? (http://www.zerohedge.com/news/spain-bankia-down-who-next)

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Spain Is The Most 'Over-Banked' Nation In Europe (http://www.zerohedge.com/news/spain-most-over-banked-nation-europe)

[Ares]

You mean there is a limit to other peoples money? I'll be damned.

[mamboni]

"Now you be a printer! Go get some ink, and start printin' some more of that shit!"

-Draghi to Bernanke

[osoab]

"Now you be a printer! Go get some ink, and start printin' some more of that shit!"

-Draghi to Bernanke



Well Greece did did run out of ink for there tax forms.

How long can the EU keep up their ink and paper supplies?
Greece Runs Out Of Ink, Can't Print Tax Forms (http://www.zerohedge.com/news/greece-runs-out-ink-cant-print-tax-forms) http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)

[JJ.G0ldD0t]

so ... how do ya buy ink and paper if you're all outta money hmmmm? :P

[mamboni]

Well Greece did did run out of ink for there tax forms.

How long can the EU keep up their ink and paper supplies?
Greece Runs Out Of Ink, Can't Print Tax Forms (http://www.zerohedge.com/news/greece-runs-out-ink-cant-print-tax-forms)

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)

You can't make this shit up...what a total joke. Centrally planned economy my ass. Europe is imploding and the USA is next on the hit parade. Got gold?

[gunDriller]

sounds like the Spaniards bought some road-kill real estate and now it's beginning to stink up the place.

and triple-bagging it won't fix the situation !

hard to feel sorry for greedy people.


i wonder how many Spanish banksters are warming up their Israeli passport, and playing the get out of jail free card.

[Neuro]

The Spanish economy has thrived on Northern Europeans buying holiday homes there. It started in the 70's Spain had a weak currency, labor was cheap, and so were living expenses. After Euro entrance, living expenses are pretty much the same as in Northern Europe. House prices in Euro terms followed initaly, they were spiking, and construction was ongoing. Middle agers sold their houses, bought an apartment and invested the difference in a holiday home in the south. Kept the economy going in Spain. It was a good investment as long as new buyers entered. They don't any longer, cause living in Spain is no longer cheap, and house prices are depreciating, there is no new housing construction= mass unemployment= increase in crime, and less people want to have a home there. Spanish banks lended lots of money to developers who now can't sell. Bad, bad, bad spiral!

[Serpo]

The pain in Spain falls mainly...........well everywhere..........

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://gold-silver.us/users/tyler-durden)
Be Afraid Europe, Be Very Afraid - Tim Geithner Is Now "Helping" You (http://www.zerohedge.com/news/be-afaird-europe-be-very-afraid-tim-geithner-now-helping-you)

If there was one piece of news that could force an all out panic in a market already on the edge, it is that outgoing (as in finally departing) US Treasury Secretary, Tim Geithner, was getting involved in the European Crisis. Sadly, this is precisely what happened.


SPAIN DEPUTY PM: US TREASURY'S GEITHNER AGREES TO WORK WITH SPAIN TO RESOLVE BANK CRISIS - DJ
SAENZ DE SANTAMARIA SAYS GEITHNER URGES SPAIN BANK SOLUTION
SPAIN'S SAENZ DE SANTAMARIA TOLD GEITHNER OF REFORM EFFORTS
GEITHNER DISCUSSED SPAIN'S PLANS TO STRENGTHEN FINANCE SECTOR
SPAIN'S SAENZ DE SANTAMARIA TOLD GEITHNER OF REFORM EFFORTS

Sorry, Europe, you are now doomed.



....
edit,

fixed the above. I am having browser issues.

[osoab]

Trying a different browser (IE). I see the text edit and the tag things for vid pics and links. I could not edit the post above, though.

Updating FF to see if that helps.