Spain to be next victim of banking?

[dre]

If Greece was the focus of markets' angst last week, attention this week has shifted to the other end of the Mediterranean.

Spain's public finances are nothing like as grim as the Greeks', but a worsening banking crisis threatens to deepen an already painful recession and endanger the future of the eurozone.

The immediate cause of the pain in Spain is the need to recapitalize the country's fourth-largest bank, Bankia -- itself an unwieldy amalgam of previously-ailing financial institutions.

The bank asked the government for the not inconsiderable sum of €19 billion ($23.5 billion) last week. The state has already pumped some €20 billion into a banking system crippled by bad debt -- much of it property-related.

Same old story... Banks bid up a false property boom by setting interest rates too low, and now they want the tax payers to bail them out.

Once spain needs to be bailed out by the ECB it will probably take about 10 times as much money to do it compared to Greece. Hope youre all ready to pay your share!

Edited June 2, 2012 by dre

[TheNewTeddy]

Spain's various provinces and states are all deeply in debt.

[punked]

Spain's various provinces and states are all deeply in debt.

It is their private banking debt not their public debt that is the problem. The true problem was the government guaranteed loans of private banks then turned a blind eye to what they were doing.

Edited June 2, 2012 by punked

[Topaz]

We don't hear all the much about what's happening and the information out there is limited but here's a view by a financial guru and his view on what is happening in EU and could spread to the rest of the world. Do you agree with him? http://www.infowars.com/infowars-exclusive-max-keiser-discusses-bilderbergs-role-in-the-financial-crisis/

[Guest Manny]

Like my old (German) Pappy used to say, "Something Spanish going on around here."

[punked]

We don't hear all the much about what's happening and the information out there is limited but here's a view by a financial guru and his view on what is happening in EU and could spread to the rest of the world. Do you agree with him? http://www.infowars.com/infowars-exclusive-max-keiser-discusses-bilderbergs-role-in-the-financial-crisis/

It has to spread. Their spending in my income and my spending is their income. We live in a global world now. When someone is forced to cut back is the time for you to ramp up our spending or you are next on the recession list.

[dre]

We don't hear all the much about what's happening and the information out there is limited but here's a view by a financial guru and his view on what is happening in EU and could spread to the rest of the world. Do you agree with him? http://www.infowars.com/infowars-exclusive-max-keiser-discusses-bilderbergs-role-in-the-financial-crisis/

Thats a pretty accurate assessment yeah.

Most important to understand is the point made about how real income producuing Greek property and enterprise such a shipping, gold mining, and tourism is being taken over by the ECB/IMF and their creditors.

Basically the ECB prints massive ammounts of money and lends these countries ammounts they know they will never be able to pay back... then it siezes real assets as payment when these countries inevitably can no longer service their debt.

And his point about shadow government is especially precient, as the ECB/IMF is installing technocrats all over europe, and national democracies have less and less power, and bankers have more and more.

Basically whats happening is exactly what we were warned about...

The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits." — SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain):