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Tuesday, June 19, 2012

Spain pleads for ECB rescue as bond markets slam shut - Telegraph

Europe's leaders have vowed to mobilise all possible means to counter the region's escalating crisis after Spain's borrowing costs threatened to spiral out of control.

Blogman's Notes: Less than a month after Spain's PM Rajoy confidently proclaimed that Spain was not Uganda and would not need a bailout, the Spanish Finance Minister is now BEGGING the ECB for exactly that which the PM denied would ever be needed, a Bailout! And from the 100 billion Euro amount that was supposed to have done the job only a week ago, the amount has now risen to 450 billion Euros. And so the  game continues; pretend there is a solution while ignoring the real solution which is to let the whole banking system fail and repudiate all public DEBTS and most private ones as well! The odds of the Arctic becoming a tropical paradise are greater than that of this solution, the only workable solution ever being implemented. So the noose tightens around the neck of the Global Economy even as most Spaniards and other peoples of the world are busy watching Euro Cup and Justin Bieber. When the inevitable Global Economic Collapse happens, as it must, most people will be shocked but I'm sure that group of shell-shocked zombies will not include readers of this blog whose desire to stay informed far exceeds their desire to waste their lives on mindless amusements!
Yields on 10-year Spanish bonds surged to a record high of almost 7.3pc as investors ignored the victory of pro-bailout parties in Greece's elections.
The closely-watched two-year yield rocketed by 65 basis points in a matter of hours, signalling a near-total collapse of confidence in Spain's €100bn (£80.3bn) rescue from the EU last week to shore up its banking system.
Cristobal Montoro, the economy minister, warned that Spain is now in a "critical" condition and pleaded with the European Central Bank to act with "full force" to defeat markets hostile to the euro project.

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