Spanish fiscal reform plans exceed the recommendations of the EU, says economy minister de...

Spanish fiscal reform plans exceed the recommendations of the EU, says economy minister de Guindos. If true, the boast is an important one as it means Spain can submit to a bailout without having to go through the politically difficult route of accepting EU conditions. This would then trigger the ECB bond purchase program. Stocks rally to a session high, the S&P 500 +0.8%.

Comments (13)
  • wapiti
    , contributor
    Comments (711) | Send Message
    Didn't Greece agree to something similar 2 years ago? LOL!!
    27 Sep 2012, 12:26 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    The "somewhat sterilized" ECB bond purchase program. The ECB will be selling and buying. I'm guessing they might sell German Bunds.
    27 Sep 2012, 12:40 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
    That was my initial assumption too (which would have pushed Germany's borrowing costs up and caused some political fallout). But from what I understood he will be drawing liquidity from commercial banks, (mandatory/voluntary deposits at the ECB?).


    In any event I highly doubt it will be sterilised. Something which also never gets mentioned is the automatic monetary expansion through the near exponential growth of the Target2 balance sheet.


    Announced Spanish budgetary reforms and progress are ludicrous. Their expenditures have grown significantly of late - which is no surprise as it is in the nature of social transfer payments to rise in times of distress. Spain promising success in overcoming the principle laws of budgetary finance is not believable in the least, unless they are prepared to let 50% of their youth starve in the streets. Any bold move in that direction would lead to revolution.
    27 Sep 2012, 01:24 PM Reply Like
  • wenlock00
    , contributor
    Comments (55) | Send Message
    Europes betrayal of Spain - a nice article by Ambrose Evans-Pritchard today.


    Gives the impression that this is just the beginning of something that could end up very much in tears.
    27 Sep 2012, 01:57 PM Reply Like
  • tom_t
    , contributor
    Comments (318) | Send Message
    It's hilarious how the market reacts to this non-news... as if anything is going to be "fixed."
    27 Sep 2012, 02:17 PM Reply Like
  • recession12
    , contributor
    Comments (170) | Send Message
    Citizens of Spain are turning into angry mobs over the last cuts which caused 25% UNEMPLOYMENT. What are they going to do now? The European nations are all talk the economy is still getting worse
    27 Sep 2012, 02:22 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
    The cuts didn't cause 25% unemployment. The bursting housing bubble did - or put differently: the housing bubble created jobs where otherwise there would have been none.
    27 Sep 2012, 02:24 PM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3090) | Send Message
    Thursday, September 27, 12:11 PM Spanish fiscal reform plans exceed the recommendations of the EU, says economy minister de Guindos


    Now there is an impartial, credible source.
    27 Sep 2012, 02:33 PM Reply Like
  • daro
    , contributor
    Comments (1710) | Send Message
    is anyone saying that is false, yet?
    27 Sep 2012, 03:19 PM Reply Like
  • jaceromeo
    , contributor
    Comments (8) | Send Message
    Problem solved. Now who wants pie!?!
    27 Sep 2012, 03:35 PM Reply Like
  • bambooman
    , contributor
    Comments (264) | Send Message
    maybe Iran could pick a fight with Spain, Italy, and Portugal. Egypt and Libya could join the fray too: why not? everyone could rev up their war engines, industrial production would increase nicely, and some of the employable population would be conveniently "eliminated."


    warfare-based QE: that's the ticket!
    27 Sep 2012, 03:54 PM Reply Like
  • anonymous#12
    , contributor
    Comments (545) | Send Message
    Doomers get obliterated once again. And I love to see the shorts lose money.
    27 Sep 2012, 04:21 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
    Then you must be hedging the currency in which your stock portfolio is denominated, otherwise you would automatically hold a short position against other major currencies, which would make you a "shortie" too.
    27 Sep 2012, 04:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs