Power of Story
Send a Tweet        
- Advertisement -
OpEdNews Op Eds

Spain: The Latest Shoe to Drop

By       Message Stephen Lendman     Permalink
      (Page 2 of 7 pages) Become a premium member to see this article and all articles as one long page.
Related Topic(s): ; ; ; ; , Add Tags Add to My Group(s)

Must Read 1  
View Ratings | Rate It

opednews.com

Author 194
Become a Fan
  (191 fans)
- Advertisement -

America's economy is much weaker than reported. Europe is in serious crisis. Greece is bankrupt. Only its obituary remains to be written. Portugal and Ireland aren't far behind. So is Italy. Spain is the latest shoe to drop. It's been deteriorating badly for years.

It's the fifth EU country to seek bailout help. On what terms isn't clear. Some reports claim no stringent ones. Others disagree. The devil is always in the details. So far they lack clarity.

- Advertisement -

Spain's Economy Minister, Luis de Guindos, said draconian conditions aren't demanded. According to German Finance Minister Wolfgang Schauble, "troika" medicine accompanies the deal.

Bailouts, of course, never work. At best they buy time. They also assure greater trouble. Burdensome debt gets more onerous and harder to repay. Solving a debt crisis by adding more assures failure.

- Advertisement -

Spain is deeply troubled. Its major banks are insolvent. With unemployment around 25%, Prime Minister Mariano Rajoy admitted things are bad and getting worse. He expects protracted recession. He understated its severity. 

At the same time, on May 28, he said "there will be no Spanish banking rescue." How do you say egg on his face in Spanish?

Madrid's debt burden and borrowing costs are unsustainable. Both sovereign and private sectors are troubled. Rajoy describes the deal as a non-sovereign loan to Spanish banks. How does he explain more egg on his face?

- Advertisement -

It'll come through the Fund for Orderly Bank Restructuring (FROB). In June 2009, Spain established it to bail out and restructure its troubled banks. Its own documentation says funds disbursed have "explicit, unconditional and irrevocable guarantee of the Kingdom of Spain."

Next Page  1  |  2  |  3  |  4  |  5  |  6  |  7

 

- Advertisement -

Must Read 1  
View Ratings | Rate It

I was born in 1934, am a retired, progressive small businessman concerned about all the major national and world issues, committed to speak out and write about them.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): ; ; ; ; , Add Tags
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The McCain-Lieberman Police State Act

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now

Continuity of Government: Coup d'Etat Authority in America

America Facing Depression and Bankruptcy

Lies, Damn Lies and the Murdoch Empire

Mandatory Swine Flu Vaccine Alert