Friday, July 27, 2012

Now Spain Needs 300 Billion Euro Bailout on Top of 100 Billion Bailout

Spain has for the first time conceded it might need a full EU/IMF bailout worth 300 billion euros ($366 billion) if its borrowing costs remain unsustainably high, a euro zone official said, Reuters is reporting.

According to Reuters, Economy Minister Luis de Guindos brought up the issue with German counterpart Wolfgang Schaeuble in a meeting in Berlin last Tuesday as Spain's borrowing costs soared past 7.6 percent, the source said.

The money would come on top of the 100 billion euros already agreed to prop up Spain's banking sector.

These bailout requests will never end, given the spending going on by PIIGS governments. At some point the ECB will have to print huge amounts of euros or the EZ collapses.


  1. One bailout after another...

    Don't these idiots get it?

  2. Where do I sign up for these bailouts? All I need is a measly half a Billion and I guarantee a decent amount of it would be used to stimulate the economy and help businesses and won't be given back to the feds to hold.

    1. Not until you have acquire the power to own your own money printing press you serf!

  3. That's a joke, right? $400bn? The whole country is only 47 mil people and $1.5tn GDP. Uh... 30% GDP bailout?!? Wow. This isn't definitively not going to end well.

  4. A 7.6% interest rate is world-ending?

    Looking at historic US Treasuries (, we see that the US had rates around or above 7.5% from 1972 to 1992. That's 20 consecutive years!

    Furthermore, the Spanish govt's interest rates were routinely above 10% before the Euro was invented. ( There was no sense of world panic then.

    It is entirely plausible that the current risks of solvency price Spanish bonds in the 8-10% range, and there are good odds that the Spanish economy can endure them as it has before. An exponential spike in rates that Mr. Wenzel postulates is very possible, but nowhere near certain. Both the masters of the universe and the peanut gallery would do better to relax.

  5. It seems that at long last the ECB is doing something to actively engage Spain in an accelerated recovery, or rather protection of default (of which, some argue, it was never in fear of). The following is pretty much the latest of what’s out on the case (I read it just this morning) so I hope it may be of some interest to you as well -