Skip to comments.Spain borrowing costs smash record after downgrade
Posted on 06/14/2012 4:43:59 AM PDT by John W
MADRID Spain's borrowing costs shattered euro-era records on Thursday after Moody's downgraded its debt close to junk-bond status and warned of a growing risk of a full-blown bailout.
A weekend deal for eurozone powers to extend a bailout loan of up to 100 billion euros ($125 billion) to salvage Spain's stricken banks failed to stop an intensifying storm on the debt market.
Instead, the sheer size of the rescue loan fed fears about its impact on Spain's mushrooming sovereign debt and prompted concerns that the state may eventually need rescuing itself.
The Spanish crisis is unfolding against the background of Sunday's Greek elections, further destabilising markets that fear a victory by anti-austerity parties could send Athens back to the drachma.
The interest rate on Spanish 10-year government bonds soared to 6.9650 percent, the highest since the birth of the single currency in 1999, from 6.721 percent the previous evening.
The difference in the rate between Spanish and safe-haven German 10-year bonds breached 5.50 percentage points, another euro-era record.
Such high interest rates are regarded by many analysts as impossible for the nation to afford to finance its activities over the longer term, raising the risk of a bigger bailout, just as was the case for Greece, Ireland and neighbour Portugal.
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Interest rates for the Italians also up.
They wouldn’t like it, but Europe needs Scott Walker.
Borrowing to run the government, making the bankers the real controllers of the currency ... and now Spain is proving that such a foolish, democrat style governance ruins a nation. What are we, $200 trillion in debt, counting the ‘IOUs’ the elected representatives have written in obligations rather than spend only what is taken in? America is being debentured to the global banking controllers to end Our sovereignty. If we do not learn from Spain and Greece and Ireland, then we will be finished off by little barry bastard commie and his hench Soros thuggery.
A Scott Walker for the Euro-peons would be a good start but let’s get a Chainsaw Al in there to really clean things up.
Who is Chainsaw Al?
Albert John Dunlap (born July 26, 1937) is a retired corporate executive. He was best known as a turnaround specialist and downsizer. The ruthless methods he employed to streamline ailing companies, most notably Scott Paper, won him the nicknames “Chainsaw Al” and “Rambo in Pinstripes”. However, his reputation was ruined after he engineered a massive accounting scandal at Sunbeam-Oster.
Dunlap believed that the primary goal of any business should be to make money for its shareholders. To that end, he believed in making widespread cuts, including massive layoffs, in order to streamline operations. By firing thousands of employees at once and closing plants and factories, he drastically altered the economic status of such corporations as Scott Paper and Crown Zellerbach. He sold Scott Paper to Kimberly-Clark in 1995 for $7.8 billion and walked away with a $100 million golden parachute.
I notice that the Lame stream Socialist MSM has, without fanfare, stopped using the “unexpected” adjective.
Methinks they are getting a bit bewildered & shell shocked by the thunder of collapse..