Of course after ireland now comes spain, now why should anyone even start to worry, I say who gives a fuck, its just another basic bailout, shouldn't this "strategist" know by now that these bailouts are pretty much a non event these days. Why this is even news is beyond me. In Bailouts, Spain Will Be 'the Biggie': Strategist Published: Monday, 22 Nov 2010 | 5:46 AM ET Text Size By: CNBC.com The biggest bailout the European Union will have to do if it comes to it will be Spain and it is worrying that there is not a set mechanism on how to go about it, Cornelia Meyer, CEO & Chairman, MRL Corporation, told CNBC Monday. At the weekend, euro zone financial ministers and Irish officials agreed on a bailout of under 100 billion euros ($137 billion) for Ireland, sending stocks in Europe and the euro higher, as investors breathed a sigh of relief. But the next in line for European Union and International Monetary Fund money may be Portugal, and then Spain, analysts said. "We're getting near the end-game in terms of Ireland, and that was a good bailout, and we did all the right things; but hot on the heels of Ireland we have Portugal and then Spain, and Spain will be the biggie," Meyer said. She predicted that a Spanish bailout would likely cost up to 500 billion euros; but there is no "real mechanism" to deal with it, Meyer added. "We saw it with Greece and the unhelpful way of solving the Greek problem and we saw it again with Ireland and some very unhelpful comments out of Germany," she said. "We really need to get to a modus operandi." Relief over the agreement on Ireland has lifted stock markets but there are still clouds on the euro zone horizon, Philippe Gijsels, head of global markets research at BNP Paribas Fortis, said. "You still have Portugal; you still have the line in the sand with Spain, and also you have the emerging markets that scare me, because with all the money thatâs put into the system by Bernanke, you see massive inflation in these countries," Gijsels said. Printing money, especially by the US, will cause "massive inflation" in emerging market countries and they will probably raise capital requirements and interest rates and try to stem their currencies' appreciation, he said.
Spain, if it happens, will be a "an event", that's for sure. Ireland and Greece are total peanuts compared to Spain. In fact, the point of the Greece/Ireland etc efforts is to forestall the contagion that eventually will topple Spain. So far these efforts seem to have amounted to nuthin' much.
It´s all about risk / return. Hedgies had easy game with Greece and Ireland. Spain is a heavy puncher. You want to attack Santander and BBVA ? Good luck ! Who cares about cajas anyway ? It´s a regional Spanish play.
I am a nice guy, I don't wanna attack nobody... On the other hand, people didn't care about AIB, 'cause it was a regional Irish play. Where did that get us?
You don't need to 'attack' Santander or BBVA or any specific Spanish bank. You can just short the $IBEX.
You might think this is a good idea, but still at more than 20 % unemployment rate the $IBEX is holding up pretty good. What do you think, are the 20 % doing - enjoying some sort of siesta ? I saw them attending FC Barcelona - Sevilla lately. Pretty much impressive soccer club...And Messi - what a player !
i;m amazed they don't just pull a USA. Put up 700 billion - and issue statement that they will do "whatever is nescessarry". Calm the markets and we can all go long and party till the punchbowl inflates...
I don't entirely understand the situation of greece. this is from Nov. 15: http://www.bbc.co.uk/news/business-11755320 Why is their 10 yr. note yield, as of today (Mon) sitting at 11.902%? Eventhough they are borrowing again in that $1T package, the amt. of money has been set aside for them since May. The Greece bond market should have price in long ago. Why their yield going higher by the day? Last Fri., they are at 11.661%, and before that, it's lower (I can't remember what it was off hand) So they decide to borrow more $$, what's the big deal? Bottom line, is there any reason for Greece to go belly up?
Slow motion train wreck. Nothing was solved. The much touted austerity proved to be more talk than action, thus far. Deep shit ahead.