SPANISH BANKS NEED MORE CAPITAL – RAJOY ( Welcome back to crisis!)

Russian Market‏@russian_market1 min
SPANISH BANKS NEED MORE CAPITAL – RAJOY ( Welcome back to crisis!)

zerohedge‏@zerohedge5 m
RAJOY DOES NOT RULE OUT PROSPECT THAT SPANISH BANKS WILL REQUIRE MORE MONEY

zerohedge‏@zerohedge6 m
RAJOY SAYS IF SPANISH BANKS NEED CAPITAL, WON’T COME FROM EU

Spain economy, imports tell the full story:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/05/Spain%20Imports.jpg

Spain banks may need to raise money to meet provisions: Rajoy

http://www.foxbusiness.com/news/2013/05/22/spain-banks-may-need-to-raise-money-to-meet-provisions-rajoy/

Rajoy Needs to Stand Up to Spain’s Banks

There are two schools of thought about the government [...]

Self-Serving Recommendation of the Day: Visa Asks Spain to Lower Limit on Cash Transactions

from Mike Mish Shedlock:

Spain’s underground economy is reportedly 19% of GDP. Is it? Who knows? Whatever it is, Visa has its eyes on transaction fees while holding a carrot in front of the Spanish government regarding more taxable income.

Via Mish-modified translation from Libre Mercado, please consider Visa recommends Spain further limit the use of cash transactions.

 The black market economic activity is beyond the control of the Treasury, and is one of the [...]

When The Economy Collapses In The USA, The People Go Shopping!

Steve Watson
Infowars.com
Nov 23, 2012

In Greece, with the economy collapsing, the people attempt to push through barricades where their political leaders are meeting:

In the US, with the economy collapsing, the people attempt to push through barricades at Victoria’s Secret to buy panties:

In Spain, with the economy collapsing, the people take to the streets in desperation, where clashes with police break out over austerity cuts:

In the US, with the economy collapsing, the [...]

Eurozone CRISIS: Spain’s GDP shrinks by 0.3%

Spain’s economy has continued to shrink, according to official figures, as the government’s harsh austerity measures take their toll.

The country’s GDP contracted by 0.3% between July and September, slightly better than the 0.4% drop of the previous quarter, the country’s National Statistics Institute said.

 

http://news.sky.com/story/1004644/eurozone-crisis-spains-gdp-shrinks-by-0-3-percent

Spanish Police Say Alleged Chinese Mafia Smuggling Plot So Big It ‘Distorted’ Entire Economy

Yesterday, we reported on an alleged Chinese mafia money-laundering plot in Spain that led to scores of arrests — including that of a Madrid Councilor and a Spanish porn star.

 

Well that was just the tip of the iceberg.

In a press conference today, Ignacio Cosidó, the Director-General of the National Police, said that the uncovered plot was so lucrative that it “distorted the functioning of the [Spanish] economy.” Cosidó believes the that the syndicate was smuggling approximately €160 [...]

The Spanish Financial System Completely Collapses And Spain Is About To Reboot With A 100 Percent Decline In GDP And 100 Percent Unemployment. It’s Absolutely Terrifying!!!

The Horrific, Worst-Case Scenario For Spain

Spain is in trouble.

The macroeconomic outlook continues to deteriorate as unemployment rises. Angry citizens are protesting austerity in the streets.

At the same time, Spain has just unveiled its 2013 austerity budget, but the overly-optimistic macroeconomic assumptions underlying the plan foreshadow missed deficit targets in the coming quarters, which will likely force a new round of austerity measures, further worsening the economic contraction.

Meanwhile, the Spanish region [...]

Spain economy did worse than thought in 2010, 2011

MADRID (Reuters) – Spain’s economy performed far worse than initially thought in both 2010 and 2011, data showed on Monday, suggesting the country may find it even harder to emerge from a recession that threatens to push it into seeking a sovereign bailout.

The economy shrank 0.3 percent in 2010 and grew 0.4 percent last year, according to the revised data from statistics institute INE.

http://www.chicagotribune.com/business/sns-rt-us-spain-gdp-revisionbre87q0hb-20120827,0,3203184.story

SPAIN GROWING POT TO survive economy!

RT

 

A “dying” Spanish town suffering from massive unemployment is trying to stem the tide of economic decay the only way they can: by farming pot. Are the desperate measures being taken in Spain a sign of things to come as Europe’s economic crisis deepens?

Nestled in the foothills of the Serra De Cardo in Catalonia, Rasquera looks like an ideal place to live.  But swept up in the wave of mass [...]

Spain stuck in recession as economy shrinks 0.4 percent in Q2

washingtonpost.com
July 30, 2012

The Spanish economy remains stuck in its second recession in three years after contracting 0.4 percent in the second quarter of 2012 from the previous three months, according to official data.

It was the third consecutive contraction following the previous two 0.3 percent quarterly declines, Spain’s National Statistics Institute said Monday.

Read more

Spain’s recession is getting worse

The third quarter decline in a row

The drastic austerity measures the government and the mass unemployment push deeper into recession in Spain. The gross domestic product (GDP) shrank by 0.4 percent in the second quarter of the previous quarter. This was announced by the Spanish Statistics Office. Even in the two previous quarters, there had been a decline of 0.3 percent.

In comparison, the intensification of the crisis is even more clear: According to [...]

PAIN IN SPAIN BRINGS MORE DRAIN

(Reuters) – Spain’s economy sank deeper into recession in the second quarter, its central bank said on Monday, as investors spooked by a funding crisis in its regions pushed the country ever closer to a full bailout.

Economic output shrank by 0.4 percent in the three months from April to June having slumped by 0.3 percent in the first quarter, the Bank of Spainsaid in its monthly report.

Economy Minister Luis de Guindos [...]

Analysis: Spain’s new austerity buys some time, not solution

(Reuters) - Spain may have won some time with markets and praise from Europe but it has little left in the locker to avoid a state bailout as a new 65-billion-euro austerity program could deepen the country’s economic woes rather than solve them, analysts say.

The measures announced on Wednesday saw Prime Minister Mariano Rajoy backtrack on many of the pledges he campaigned on six months ago, to meet demands made by the [...]

VAT/IVA from 18 to 21%: Spain to implement new VAT rate in August: source

(Reuters) - Spain will implement a 3 percentage-point hike to the value-added tax rate on August 1, a government source said on Wednesday.

The main rate of value-added tax on goods and services will rise to 21 percent from 18 percent.

http://www.reuters.com/article/2012/07/11/us-spain-economy-tax-

Spain’s ghost airport: The 1BILLION transport hub closed after just three years that’s now falling into rack and ruin

It was the billion euro airport designed to cater for Spain’s booming economy  – serving both city and coast via a state-of-the-art high speed rail link.

Projected to take the overflow from Madrid’s Barajas airport, some 150 miles to the north, Ciudad Real’s flagship transport hub was to be a symbol of modern Spain’s affluence.

But sadly it has proved to be one of a number of many white elephants for the [...]

DAVID ROSENBERG: 51 Signs The Economy Is A Total Disaster

The U.S. economic recovery has been weak and the looming fiscal cliff threatens to act as a further drag on the economy. Europe is imploding with the chances of a ‘Grexit’ increasing, and Spain’s economy deteriorating and risking contagion.

In his latest report “Charts With Dave”, bearish Gluskin Sheff economist David Rosenberg looks at the state of the U.S. and global economy and writes that the recovery isn’t where it should be.

“Three years [...]

Spanish PM calls for European unity as the only way to save Europe by bailing out Spain:

Spanish Prime Minister Mariano Rajoy made a plea on Saturday for greater political and fiscal union in Europe, urging Greeks to stick with the euro as they gear up for an election whose outcome will shape the single currency’s future.

Saying Spain’s business, banks and regional governments were struggling to finance themselves at current high borrowing costs, he urged Europe to integrate its banking system more closely, although he did not [...]

BREAKING: Spain Economy Minister De Guindos to hold news conference 7:30 PM in Madrid

BBC: Spain rejects bailout speculation

Spain’s economy minister has dampened speculation that the country is about to seek a bailout of its bank sector.

Luis de Guindos said no decision would be made until audits of the banks were completed, possibly by the end of June.

There have been reports that Spain was seeking an immediate bailout from eurozone funds.

The European Central Bank (ECB), meanwhile, dashed hopes that it would further support banks to try to [...]

Global stock markets rocket as Spainish Economy minister says it doesn’t need an immediate bailout, but will re- evaluate things nearer the end of June:

Spain’s economy minister has dampened speculation that the country is about to seek a bailout of its bank sector.

Luis de Guindos said no decision would be made until audits of the banks were completed, possibly by the end of June.

There have been reports in the last few days that Spain was seeking an immediate bailout from eurozone funds.

Mr de Guindos was speaking in Brussels, where proposals aiming to avoid [...]

Spain admits it has been frozen out of global credit markets as its economy collapses:

Premier Mariano Rajoy said the country is “in an extremely difficult situation” and called on Europe to stand by the mutual obligations of euro membership. “Europe must say where it is going and show that the euro is an irreversible project that is not in danger, that helps nations in difficulty,” he told Spain’s senate.

Treasury minister Cristobal Montoro confessed that Spain can no longer raise money. “The market is no [...]

TRADER ALERT! Spain, Euro’s 4th Biggest Economy in ‘Total Emergency’, Admits It Needs European Bailout. – Puts Out SOS!! Germany Ignores!! June 7 may be the D-Day for Europe!

Its 2012.. Everything is about to hit the fan.. I mean everything.

via telegraph:

Spain is in ‘total emergency’, the EU in total denial.

After a Spanish exit from the euro, there would be nothing left to exit from.

I’ve never actually heard the term “total emergency” before, at least not in the context of global economics. It sounds like the title of a disaster movie. When it is uttered in sober tones by [...]

BREAKING BAD: BILLIONS FLY OUT OF SPAIN! $82B MOVED ABROAD IN LAST MONTH!!! INVESTORS FLEE!

Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.

Spain is the next country in the firing line of the euro zone’s debt crisis, with spendthrift regions and shaky banks threatening to blow a hole in state finances and pushing funding costs towards levels that signal the [...]

As Spain’s economy collapses, record fall in business, with retail sales falling 4% in March and 11.3% in April:

via BBC News:

Spanish retail sales dived in April, showing the biggest fall since the figures started being collected in 2003.

Sales fell 9.8% last month compared with the same month last year, after adjusting for calendar differences, according to official figures from the National Statistics Institute.

The fall was much worse than had been expected, and marked the 22nd consecutive month of declining sales.

Sales had fallen by 3.8% in March.

Without adjusting [...]

Ambrose Evans-Pritchard: The country’s collapse is the mathematically certain – and widely predicted – result of ferocious monetary and fiscal contraction on an economy struggling to deal with a housing bust

via Telegraph:

Spain is spiralling into the vortex of debt-deflation. This has nothing to do with Greece. It is not the result of fiscal extravagance over the past decade, or other such Wagnerian myths.

The country’s collapse is the mathematically certain – and widely predicted – result of ferocious monetary and fiscal contraction on an economy struggling to deal with a housing bust.

Monetary tightening by the European Central Bank caused Spanish real [...]

Spain’s de Guindos: Economy to contract again

MADRID (MarketWatch) — Spanish Economy Minister Luis de Guindos on Monday said the country’s economy will contract again in the second quarter, according to media reports. The country’s economy, at the heart of deep worries for financial markets, contracted 0.3% in the first quarter, its second straight quarter of economic decline. Late Friday, the government revised up its budget deficit to 8.9% from 8.5% for 2011, after four regions reported [...]

Europe’s Worst Fear: Spain and Greece Spiral Down Together

 

The Italian market is about to break 08′ lows.

http://www.marketwatch.com/investing/index/IBEX?countrycode=XX

 

LONDON — In a season of nightmare projections for Europe, this one could be the scariest: Greek leaves the euro currency union at the same time Spain’s banking system is collapsing.

http://www.nytimes.com/2012/05/21/business/global/europes-worst-fear-spain-and-greece-spiral-down-together.html

 

The anatomy of the eurozone bank run
http://blogs.ft.com/gavyndavies/2012/05/20/the-anatomy-of-the-eurozone-bank-run/#ixzz1vVNguYAp

A bank run is now happening within the eurozone. So far it has been relatively slow and prolonged, but it is a run nonetheless. And [...]

Spain’s economy minister says Bankia needs an extra 7.5bn euros to protect it against bad loans – Europe editor @BBCGavinHewitt

Spain Yields at 6% Show Bank, Economy Risk; ECB urges euro zone to share bank rescue costs

As Spain’s recession undermines efforts to cut the deficit, the risk of bank losses is keeping 10-year yields at almost 6 percent as investors speculate the government will be forced to bail out the financial system.

The nation’s 10-year borrowing costs have climbed about 70 basis points this year as Prime Minister Mariano Rajoy struggles to convince investors he can control public finances amid soaring unemployment and a contracting economy. Banks [...]

Spain is Greece… Only Bigger and Worse

On the Surface, Spain’s debt woes have many things in common with those of Greece:

1)   Bad age demographics

2)   A toxic bank system

However, you’ll note that as we tackle each of these, Spain is in fact in far worse fiscal shape than Greece.

Currently there is one person of non-working age (65 or older) for every four people of working age (15-64) in Spain.  This is expected to worsen to one person [...]

Spain is Doomed; Why Austerity is Destroying Europe

Let’s try a thought experiment. Imagine you walked into the bank, told them you were going to be taking pay cuts for the next few years, and then asked for a loan. You’d be laughed out of the office or else pay an interest rate so high that “usurious” wouldn’t do it justice. The logic is simple: If you’re in debt and your income is shrinking, it’s mighty hard to [...]

‘We’re back in full crisis mode’: Fears grow that Spain could need bailing out as 10-year bond rate rises to critical 7% that saw Portugal, Greece and Ireland need help

But Spain’s €1.1TRILLION economy is seen as being too big to bail out
Economy minister admits country is about to plunge back into recession
British banks lose combined £2billion in market value over fears
European financial markets remain calm over growing fears

Fears are rising that Spain will be the next member of the eurozone to beg for a financial bailout – after the interest it pays on its 10-year government bonds rose to [...]

Spanish people light bonfires outside banks as they protest against the banksters destroying the global economy, pocketing mega bonuses whilst the Spanish government imposes ever deepening austerity on the masses:

FTSE rises slightly this morning after sell-off

Losses mirrored in New York and Europe
Spain’s borrowing costs hit 6% and Italy’s also rises

 

Stock markets around the world slammed into reverse yesterday upon renewed fears that Spain will be the next eurozone economy to implode.

More than £33billion was wiped off the value of Britain’s leading companies as trading screens in London turned red on the first day of business after the Easter [...]

On The Pain In Spain: Spain scores 5 out of 5 on our crisis-prone indicator and markets, absent intervention, are starting to reflect that aggressively.

Much has been made, and rightly so, of the echoing crisis that is evolving in Spanish bank and sovereign credit (and equity) markets in the last few weeks. The impact of the LTRO on the optics of Spain’s problems hid the fact that things remain rather ugly under the surface still and with the fading of that cashflow and reach-around demand from the Spanish banking system, the smaller base of sovereign bond [...]

Greece is Now Irrelevant. Watch Spain and Germany

by Phoenix Capital Research

 

Earlier this month, Spain began “rocking” the EU boat by telling the EU it wasn’t going to meet the new EU fiscal requirements.

 

Spain’s sovereign thunderclap and the end of Merkel’s Europe

 

As many readers will already have seen, Premier Mariano Rajoy has refused point blank to comply with the austerity demands of the European Commission and the European Council (hijacked by Merkozy).

 

Taking what he called a “sovereign decision”, he simply [...]

Is the ECB choking on its own liquidity as Spain’s economy grinds to a halt?

Uploaded by CapitalAccount on Mar 2, 2012

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Fresh off of the ECB’s latest liquidity injection, are we still facing a eurozone banking crisis? Well let’s follow the money shall we?! Two days after 800 banks borrowed 530 billion euro from the european central bank’s 3-year LTRO…deposits at the ECB have shot up to a record 777 billion euro — more than 1 trillion dollars, as banks choose to make a [...]