When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Sunday, April 15, 2012

Spanish banks now "mainlining" ECB cash

Spain is beyond "life support"--its banks are now "mainlining" ECB cash to stay alive--

Turmoil in global markets as Spanish bank borrowing from ECB doubles - Telegraph: "The Bank of Spain disclosed the country's biggest institutions borrowed €316.3bn (£260.9bn) from the ECB in March, almost twice the €169.8bn in February. Traders dumped Spanish stocks and bought insurance against Madrid defaulting, convinced the data showed that the banks are now almost shut out of international credit markets. Spain's Ibex stock market plunged 3.6pc, with bank stocks leading the fall. The nation's benchmark 10-year bond yields soared past 6pc, heading deep into the danger zone that experts say is not sustainable without external support. Meanwhile, the cost of credit default swaps hit a record high of 500 basis points, meaning it costs £500,000 a year to insure £10m of Spanish debt over five years. This compares with around £70,000 for German debt. The spectre of another eurozone bail-out saga - only this time far bigger than Greece - rattled stock markets across Europe. In Italy, where protesters against austerity measures gathered in Rome, the MIB closed down 3.4pc. The French CAC fell 2.5pc; Germany's DAX dropped 2.4pc; and in London the FTSE 100 slid 1pc."

First Greece, now Spain, coming soon Portugal and Italy. The "turmoil" continues-- the Eurocrisis is far from over--oh, and the French are about to throw out Sarkozy. Stay tuned.

The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects