EU to lend Spanish banks up to EUR 100bn

"German Finance Minister Wolfgang Schaeuble hailed the deal for Spain as a signal of European solidarity."

Wait a minute. Who within the EU, exactly, is gonna cough up the dough that Spain ia asking? The Germans? Or does the EU think money grow on trees?

Spanish Economy Minister Luis de Guindos announced earlier in the day that the Spanish government was asking for European financial help to recapitalize its banks.

B92

What all these sovereign and banking bailouts confirm beyond any doubt is that those in power within the EU are already hard at work positioning themselves so the price of this unfixable mess called "single currency" is not paid by those who caused it but by those that were deceived into it.

If Spain had asked for 100 billion Euros to revitalise its economy would she've been given the money? Certainly not.It's another victory for corrupt and greedy bankers and their 'enchufado' politicians. It is not a victory for the Spanish people.Sod the 25% unemployment rates in Spain and elsewhere and the future prospects of the working and middle classes throughout the western democracies.

The good news is the entire phoney,rigged casino-like ponzi scheme is coming to end.It makes no difference how many billions they throw into the pyramid,its slow death is in the horizon.

BTW Any comment from the Albanian economists with Italian names laughing at my predictions?

“YOU clearly have a very limited schema of the financial world if you aren't aware of money growing on trees....the notion is called fractional reserves. As long as a bank has (for example in USA) $1 in the vault they can give out as a loan up to $20. The payments the recipient makes (principal + INTEREST) is the creation of money. The interest of that transaction is source of new money.
(KOSO, 11 June 2012 02:45)”

Did I claim to be a financial expert? And if my arithmetic is correct, for $1 to “create” $20 as you say, the bank would need to be allowed a cash reserve ratio of 5% -- do you happen to know where in the EU are banks allowed such a lax percentage?

Better still, why not just print the money to lend Spain? Then it will be really close to money growing on trees. In fact, if this were all that feasible, the Spanish would surely have done so themselves long ago, right? Methinks the Yankee banks have been doing this for a whil now, which, together with their lax credit practices, might be the root of the debt problem facing Yankee Land today. http://www.federalbudget.com/

And money doesn’t grow on trees because you still need lenders to be available and willing to lend/deposit a certain sum with the banks to begin the money creation process. My question was, who in the EU will ultimately have to cough out the money to lend. Which you didn’t answer and so, thanks but no thanks.

The Germans? Or does the EU think money grow on trees?
(lowe, 10 June 2012 16:47)

YOU clearly have a very limited schema of the financial world if you aren't aware of money growing on trees....the notion is called fractional reserves. As long as a bank has (for example in USA) $1 in the vault they can give out as a loan up to $20. The payments the recipient makes (principal + INTEREST) is the creation of money. The interest of that transaction is source of new money.

If the EU is to fix this mess Brussels needs anywhere between 5 and 6 trillion Euros. That is the naked truth.
If the EU could be described as a patient in hospital, well the doctors instead of operating have only given Spain a blood transfusion but the patient is still hemorrhaging.
The question of where is the 100 billion coming from? The Chinese banks. The EU is avoiding the US solution of printing presses as its fraught with danger and the Germans still remember post WW1. The Americans are about to warm up the presses for another round of stimulus money.

If the EU is to fix this mess Brussels needs anywhere between 5 and 6 trillion Euros. That is the naked truth.
If the EU could be described as a patient in hospital, well the doctors instead of operating have only given Spain a blood transfusion but the patient is still hemorrhaging.
The question of where is the 100 billion coming from? The Chinese banks. The EU is avoiding the US solution of printing presses as its fraught with danger and the Germans still remember post WW1. The Americans are about to warm up the presses for another round of stimulus money.

"German Finance Minister Wolfgang Schaeuble hailed the deal for Spain as a signal of European solidarity."

Wait a minute. Who within the EU, exactly, is gonna cough up the dough that Spain ia asking? The Germans? Or does the EU think money grow on trees?

Spanish Economy Minister Luis de Guindos announced earlier in the day that the Spanish government was asking for European financial help to recapitalize its banks.

B92

What all these sovereign and banking bailouts confirm beyond any doubt is that those in power within the EU are already hard at work positioning themselves so the price of this unfixable mess called "single currency" is not paid by those who caused it but by those that were deceived into it.

If Spain had asked for 100 billion Euros to revitalise its economy would she've been given the money? Certainly not.It's another victory for corrupt and greedy bankers and their 'enchufado' politicians. It is not a victory for the Spanish people.Sod the 25% unemployment rates in Spain and elsewhere and the future prospects of the working and middle classes throughout the western democracies.

The good news is the entire phoney,rigged casino-like ponzi scheme is coming to end.It makes no difference how many billions they throw into the pyramid,its slow death is in the horizon.

BTW Any comment from the Albanian economists with Italian names laughing at my predictions?

“YOU clearly have a very limited schema of the financial world if you aren't aware of money growing on trees....the notion is called fractional reserves. As long as a bank has (for example in USA) $1 in the vault they can give out as a loan up to $20. The payments the recipient makes (principal + INTEREST) is the creation of money. The interest of that transaction is source of new money.
(KOSO, 11 June 2012 02:45)”

Did I claim to be a financial expert? And if my arithmetic is correct, for $1 to “create” $20 as you say, the bank would need to be allowed a cash reserve ratio of 5% -- do you happen to know where in the EU are banks allowed such a lax percentage?

Better still, why not just print the money to lend Spain? Then it will be really close to money growing on trees. In fact, if this were all that feasible, the Spanish would surely have done so themselves long ago, right? Methinks the Yankee banks have been doing this for a whil now, which, together with their lax credit practices, might be the root of the debt problem facing Yankee Land today. http://www.federalbudget.com/

And money doesn’t grow on trees because you still need lenders to be available and willing to lend/deposit a certain sum with the banks to begin the money creation process. My question was, who in the EU will ultimately have to cough out the money to lend. Which you didn’t answer and so, thanks but no thanks.

The Germans? Or does the EU think money grow on trees?
(lowe, 10 June 2012 16:47)

YOU clearly have a very limited schema of the financial world if you aren't aware of money growing on trees....the notion is called fractional reserves. As long as a bank has (for example in USA) $1 in the vault they can give out as a loan up to $20. The payments the recipient makes (principal + INTEREST) is the creation of money. The interest of that transaction is source of new money.