pain in spain falls lainly on the politicians


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Spain asks for "strength" from the ECB instead of simply controlling itself in the first place. Wants someone to subsidize their ridiculous policies with more debt, and pretend that they're not already insolvent. We laugh..... consider the benefits of simply being responsible. We have solutions for these problems, and yes we can make money from this process.

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pain in spain falls lainly on the politicians

  1. 1. Spanish Minister Calls on ECB to Buy Bonds as Crisis Accelerates.....Prays for Bailout After Blowing Too Much Cash to Remain Elected. Citizens to face national bankruptcy as a result of Politicians Incompetence at Managing Finances.A Spanish minister called on the European Central Bank to do more tostem the sovereign debt crisis as the cost of insuring the country’sbonds against default surged to a record.“They should step up purchases of bonds,” Jaime Garcia- Legaz, a deputyminister in Luis de Guindos’s Economy Ministry, said yesterday in aninterview.His comments came as ECB officials split over the steps to tame thecrisis amid growing expectations that Spain will be the next euromember to seek a European bailout. Spanish banks’ borrowings fromthe ECB surged almost 50 percent in March, data showed yesterday, asthey took almost a third of the longer-term lending offered to euro-region institutions.Prime Minister Mariano Rajoy is struggling to convince investors he canget Spain’s finances under control after last month refusing to meetdeficit targets set by the European Commission and the previousgovernment. While Rajoy said on April 12 Spain won’t need a rescue,credit-default swaps rose 17 basis points to 498 yesterday, surpassingthe all-time high closing price of 493, according to CMA.The yield on Spain’s 10-year bonds rose 16 basis points to 5.98 percent,edging closer to the 7 percent level that pushed Greece, Ireland andPortugal into rescues.
  2. 2. Garcia-Legaz’s comments go beyond those of his prime minister, whohas repeatedly praised the ECB’s extraordinary liquidity measures.Budget Minister Cristobal Montoro referred yesterday to the“importance of the role” of European institutions in fighting the crisis.‘Stronger Bond Purchases’“If you’re demanding ultra-restrictive fiscal policies from Spain and Italythen it makes sense to have monetary policy with stronger bondpurchases,” said Garcia-Legaz, a former secretary general of the Faesresearch institute that’s linked to the ruling People’s Party.ECB officials are nevertheless struggling to present a united front overwhat to do next as investors dump Spanish bonds amid renewedconcern about bad assets at the country’s banks. While Executive Boardmember Benoit Coeure signaled on April 11 the bank may start buyingSpanish bonds, his Dutch colleague Klaas Knot said yesterday that theECB is “very far” from reactivating a policy that failed to stop a selloff inSpanish bonds in November.“I hope we never have to use it again,” he said in Amsterdam.Spanish yields surged above 6 percent in August, prompting the ECB tostart buying bonds, and reached 6.78 percent in November before ECBPresident Mario Draghi said the bank would offer financial institutionsunlimited three-year loans.Taming SpainThat measure helped tame Spanish borrowing costs, as institutions usedECB funds to pile up on the nation’s bonds. Spanish banks’ holdings ofgovernment debt jumped to 220 billion euros ($288 billion) in Januaryfrom 178 billion euros in November, according to data from theTreasury.Average net borrowings from the ECB by Spanish banks climbed to227.6 billion euros last month from 152.4 billion euros in February, theBank of Spain said yesterday on its website. In net terms, they tappedmore than 60 percent of the amount taken by euro-region lenders.
  3. 3. Still, Garcia-Legaz, a former deputy director of Spain’s Treasury who’snow in charge of trade, said Spain won’t have trouble funding itself asthe deficit cuts implemented since the government took over inDecember bolster confidence. The central government faces 11.9 billioneuros of bond redemptions in April, 12.7 billion euros in July, and 20.2billion euros in October, Treasury data show.“With the profile of redemptions it has and the credibility that will begenerated from the deficit reduction, it won’t have problems financingitself,” he said.So long as theyre continuously bailed out.....why would MORE DEBT be a problemthan the currently unsustainable load?We have solutions to these problems. Protect your portfolio. Speak with us today.肖恩 Shawn A. Mesaros董事总经理Pacific Asset Management金茂大厦31楼 Jin Mao Tower, Suite #31/F浦东世纪大道88号中国 上海, 200120手机: +86 182-2156-3221电话: +86 021-6155-8388传真: +86 021-6182-6777邮箱: shawnm@pamria.comwww.pamria.comDual Shore Services USA / Asia PacificShawn A. MesarosManaging Director太平洋 Pacific Asset ManagementTwo Union Square601 Union Street, Suite #4200Seattle, WA 98101(206) 933-1600 Seattle Office(206) 600-3175 Fax(206) 923-9200 Re-Direct Shanghai852-8199-9853 Hong Kong