Bankia hurtles 24.5% lower in Madrid following news that Spain's government will provide...

This news story has 8 comments:

Register or Login to rate comments »

mitrado Comments (1361)
 
Bail me out, bail me out...

If I go to a casino and lose all my money gambling, will the government give me a bail out as well!?

Freaking banks. I say we let them crash and burn.
Maybe that way they'll stop gambling and lending to people who can't afford a loan... bloody idiots! Let them go bankrupt. Stop the robbery!
28 May 2012, 07:58 AM Reply Like

Vet4RonPaul Comments (81)
 
Exactly right Mitrado. The US and EU banks are now all playing the long odds at the casino because if they win, they win big and if they lose, they lose other people's money. It is amazing how we sheeple and muppets allow the Fed, ECB and IMF to rape us daily. The problem is that the majority of EU and US citizens, and even illegal immigrants!, depend on government subsidies to get by (eg. local/state/federal government employment, students, teachers, government contracts, food-stamps, bailouts, etc.) and the majority is not about to vote for a stoppage of the transfer of wealth from the middle-class to them. It is a daunting challenge to change this culture of white collar entitlement and socialism.
28 May 2012, 02:33 PM Reply Like

DeepValueLover Comments (5073)
 
There is no one else left to provide liquidity.

We are approaching the End Game...
28 May 2012, 09:31 AM Reply Like

Andresrue Comments (167)
 
The Bankia bailout will be financed by the ECB. In other words, the bank's debts essentially will be monetized. The mechanics probably will be as follows. Spanish government issues bonds to finance the bailout, Bankia acquires those bonds, Bankia pledges those bonds to the ECB, the ECB gives the bank freshly minted euros, Bankia keeps the difference between the yield on the Spanish bonds and the very low interest it pays on the ECB's euros. Essentially, the same strategy that the fed used during the US financial crisis. Debts are simply wiped out by printing money. All the hysterics out there who are concerned about the end of capitalism and a cataclysm resulting from euro debts, the end of the euro, Greece, or whatever, should keep in mind how downright EASY it is for the central banks to remedy these problems. Print, print, print.
28 May 2012, 03:19 PM Reply Like

DeepValueLover Comments (5073)
 
And the more they print, the more gold and silver I collect to hedge the mountains of new paper money.
28 May 2012, 04:25 PM Reply Like

Andresrue Comments (167)
 
I don't know if the actions of the ECB will lead to runaway inflation. Maybe. It depends on aggregate credit growth. Be that as it may, the problems of certain Spanish banks, of Greece, etc. appear very manageable. I don't understand all the hysterics surrounding the Eurozone. Same tired story for over three years, and yet it seems that some people forget about the fundamentals of specific companies and trade solely around these so-called "macro issues". Does not make a lot of sense to me. The ECB has powerful tools in place to address these problems. I don't understand why some folk insist on placing their bets against the central banks. Seems to me like a trade destined to lose money, maybe not tomorrow but the day after tomorrow for sure.
28 May 2012, 04:59 PM Reply Like

DeepValueLover Comments (5073)
 
Each new euro (or dollar) renders every existing euro (or dollar) a tiny bit less valuable.

Just as if you get enough drops of water together you will have an ocean, if you get enough units of paper currency together you will have Zimbabwe from the last decade.

Nobody knows when it will happen but the only people who will be safe are holders of precious metals.

The metals hold value as they have for centuries while the fiat currencies come and go...the euro will be the latest to fall, imho.

The ECB has only one option...print, print, PRINT!

If that works forever then just print up 10 quadrillion euros and let the people of the euro zone live in luxurious wealth until the end of time.
28 May 2012, 08:53 PM Reply Like

Jbjam Comments (196)
 
Yes part of that is true, but people making this argument seem to forget about the giant amount of deteriorating assets they are issuing to prop up.

They are not fighting to create inflation they are fighting to prop up inflation previously created. Its a lose lose, but the direction wont be a massive win for metals long term.
1 Jun 2012, 01:27 AM Reply Like