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As expected, the eurogroup approves Spain bank's bailout. Spanish Economy Minister Luis De...

As expected, the eurogroup approves Spain bank's bailout. Spanish Economy Minister Luis De Guindos will explain the details of the MOU to parliament on Monday and it is due to be signed on Tuesday.  However, yields on 10-year government bonds are soaring 11 bps to 7.12%. The bailout may not be enough.
Comments (3)
  • marilyn61
    , contributor
    Comments (173) | Send Message
     
    In Germany yesterday, the lower house of parliament agreed to contribute to the estimated €100 billion to bail out Spanish banks. A make or break decision for the bailout to be sure. However the Germans have delayed their decision on whether the ESM will be able to recapitalise banks directly. So looks like a ' wait and see '.
    20 Jul 2012, 08:28 AM Reply Like
  • drekon
    , contributor
    Comments (193) | Send Message
     
    I understand Germany wants to extract all the concessions it can from this, but they have simply delayed the inevitable for 2 years and ensured an economic slowdown. Any concessions they are holding out for won't be guaranteed anyway, ala Greece. There are 2 choices - 1) Germany leaves the Euro or 2) Eurobonds. What are we waiting for? Like it or not, Paulson acted quickly and decisively. That is what is needed.
    20 Jul 2012, 08:32 AM Reply Like
  • Dr. V
    , contributor
    Comments (1179) | Send Message
     
    Germany needs to learn about Finance, and actually have a Finance Minister with a Finance Degree, or they need to take their toys, and leave. Let them run to Russia and China for help.

     

    NEVER trust them again, on anything.
    20 Jul 2012, 10:20 AM Reply Like
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