Seeking Alpha

Lucky or Good?'s  Instablog

Lucky or Good?
Send Message
Successful investing warrants a person to either be lucky or good. Which one are you?
My blog:
Lucky or Good?
  • Spain's Debt Level And Maturity Schedule 0 comments
    Aug 6, 2012 12:29 PM

    Spain's debt level has increased to 922 billion euros from 850 billion euros at the end of last year. Perma bulls will be quick to point out that Spain's debt to GDP ratio is better than the US at 68%...so where's the debt problem? This is just the market overreacting again! According to other analysis, Spain's REAL debt levels are much higher when you account for things like Spain's commitments to various "rescue" programs, other regional debt not recognized currently at the national level, and the very real liabilities it owes to other countries within the European banking system. When you take those factors into consideration, Spain's debt to GDP ratio looks more like 133 percent!

    It appears that Spain still needs to raise about 68 billion euros through the end of this year and about 143 billion euros in 2013. Notice how a majority of 2012 refunding was done, but just pushed out one more year. The amounts in the first table below for 2012 looks eerily similar to the 2013 line in the second table below. Spain is indeed getting shut out of financial markets, slowly. Also notice that in the span of seven months, Spain's total debt level has gone up by 72 billion euros.

    Here comes the cries for more QE and Euro-bonds. I just love how the "street" thinks this will solve all problems. If only it were that simple....

    Spain's maturity schedule at the end of 2011

    Source: Bloomberg

    Spain's maturity schedule at the end of July 2012

    Source: Bloomberg

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: EU, Marcro
Back To Lucky or Good?'s Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Successful investing warrants a person to either be lucky or good. Which one are you?
    Jun 8, 2009
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.