/* */

Style Switcher

Predefined Colors

European Union Spanish Bank Rescue Blown by the German’s!

Facebooktwittergoogle_pluspinterestFacebooktwittergoogle_pluspinterest
European Union - not our fault GUV, North America is to Blame!
European Union - Spanish Banks Rescued with £81m Bailout!

 European Union Euro-Zone saga rolls on, once again the Spanish bank rescue was hailed as a great day for the Euro and the European Union but how long does a €100 billion buy you, just 5 days, just 5 days!

European Union and the Euro-Zone, just how long will it take for the German’s to catch on but that is wrong because the German’s know full well what is needed but they are not sure they could sell it to their electorate and there are elections on the horizon, it’s that old friend democracy again!

It is amazing that within an organisation as big and powerful as the European Union and a Euro-Zone set up against many warning voices, included the UK which was the loudest, that they should expect the rest of the world to pay for their mistake, not just a mistake but a high risk gamble.

To first look at the current Spanish bank bailout, very simply, instead of bailing the banks out directly the bailout was channeled via the Spanish government and then on to the banks, this effectively increased the Spanish governments debt by €100 billion and then the debt was made superior to any other Spanish debt so if Spain defaults the €100 billion must be repaid first making any other debt much less secure.

This has made Spain virtually un-lendable to except at unsustainable interest rates, so instead of just rescuing the Spanish banking system the Euro-Zone countries have placed Spain in a position where they will soon need a Greece type bailout.

This though is not Greece, Portugal or Ireland, this is much bigger and the aftershock could also force Italy into the same position which will bring down, not ony the Euro-Zone but the whole European Union edifice, the only way to save the Euro-Zone and probably the European Union, as we now know it, is for Germany to swiftly move the Euro-Zone, if not the whole European Union towards a full United States of Europe but can they sell that to their electorate, then the European Union was not built on democracy!

The Euro-Zone simply has to carry the cost of their own, ego and power-driven, gamble, which has failed.

Further reading

The Spanish Bank Rescue is unravelling

Osborne’s

European Union - not our fault GUV, North America is to Blame!
European Union - Spanish Banks Rescued with £81m Bailout!
Facebooktwittergoogle_pluspinterestFacebooktwittergoogle_pluspinterestPosted in Politics and GovernmentTagged , , , ,

Leave a Reply

8 Comments on "European Union Spanish Bank Rescue Blown by the German’s!"

Notify of
avatar
Sort by:   newest | oldest | most voted
dalewood
Guest

United States of Europe but can they sell that to their electorate, then the EU was not built on democracy! Go to:http://t.co/C8QrGmdT

dalewood
Guest

This is not Greece, Portugal or Ireland, this is much bigger and the aftershock could also force Italy…! Go to:http://t.co/C8QrGmdT

dalewood
Guest

Spain is virtually un-lendable to except at unsustainable interest rates, so instead of just rescuing the…! Go to:http://t.co/C8QrGmdT

dalewood
Guest

If Spain defaults the the Euro-Zone €100 billion must be repaid first making any other debt much less secure. Go to:http://t.co/C8QrGmdT

dalewood
Guest

The #Euro-Zone expect the rest of the world to pay for their mistake, not just a mistake but a high risk gamble. Go to:http://t.co/C8QrGmdT

dalewood
Guest

…German’s know full well what is needed but they are not sure they could sell it to their electorate. Go to:http://t.co/C8QrGmdT

dalewood
Guest

#European_Union and the #Euro-Zone, just how long will it take for the German’s to catch on but…..! Go to:http://t.co/C8QrGmdT

dalewood
Guest

Spanish bank rescue how long does a €100 billion buy you, just 5 days, just 5 days! Go to:http://t.co/C8QrGmdT

wpDiscuz
Top