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Wednesday, April 18, 2012

Bailing out the Titanic - Spain will need bailout soon to the tune of 100's of Billion Euros

Blogman's Notes:

The Bailout saga in the US and EU just does not end but rather keeps getting bigger and bigger. Spain is now in line to receive 'Bailouts' after vehement denials by their Government and the IMF and EU that Spain will not need a bailout. What the implications of such a 'Bailout' or bailouts will be is anyone's guess. All we know is that the Global economy is like the Titanic that has hit the iceberg, and the crew, which would be the Bankers and Politicians are bailing as fast as they can to keep it afloat. The same Crew is telling the passengers that everything is fine and they can go back to the party, keep the good times rolling! But just as there was no chance that the Titanic could have been kept afloat even if all the Crew and passengers had bailed as fast and furiously as they could, neither is there any chance that the Global Economy Titanic will stay afloat. The only question is how long before it sinks? How many nations can be bailed out by the bailers-outers? If all it takes is to run the printing press and solve the problem, would there have been a problem in the first place?

(Reuters) - Economic experts watching Spain don't know how much money will be needed or precisely when, but some are near certain that Madrid will eventually seek a multi-billion euro bailout for its banks, and perhaps even for the state itself.
Prime Minister Mariano Rajoy has repeatedly said Spain doesn't need or want an international bailout, and the European Union, which along with the IMF has already rescued Greece, Ireland and Portugal, also dismisses such talk.
But economists believe that Spanish banks will have to turn to the euro zone's rescue fund, the European Financial Stability Facility (EFSF), for help in covering losses caused by a property market crash which has yet to end.
Likewise, investors are fretting about how Rajoy's centre-right government can enforce deep austerity while reviving a recession-bound economy at the same time.

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