Why The Spanish Bailout Is A Game Changer [View article]
Great article, very balanced. You are correctly pointing out that this spanish bail-out is massive, in relative terms is about as big as the US TARP one. This move adds about 10 points to spanish gov debt, which is now in the high 70ties of GDP, still way below most other big countries of the western world.
Initial Thoughts On The Spanish Bank Bailout [View article]
Spain needs 100 billion euro to clean-up their banks. They got that money on Sunday at 3% whilst they went last week to the marked for 2 billion and paid over 6%. So they save more than 3 billion euro a year on interest payments. Most of the money comes from Germany who can get it from the market at about 1.5%... so they make money too. Smart and simple!
Why The Spanish Bailout Is A Game Changer [View article]
You are correctly pointing out that this spanish bail-out is massive, in relative terms is about as big as the US TARP one.
This move adds about 10 points to spanish gov debt, which is now in the high 70ties of GDP, still way below most other big countries of the western world.
Initial Thoughts On The Spanish Bank Bailout [View article]
Smart and simple!