Incoming! Spain Bond Yields And Financing

Well now so much for this just being (or even primarily being) Greece and France….

“Today, the Treasury is practically the only one that finances itself on the markets,” he said in the Senate in Madrid today. Being locked out of debt markets isn’t“theoretical” as it’s “happening to the immense majority of regions, our whole financial sector and most big companies.”

Locked out of markets?  Uh, “credit crunch” for breakfast anyone?


Then there’s this:

Moody’s Investors Service will this month start cutting the credit ratings of more than 100 banks, a move that risks pushing up their funding costs and forcing them to curb lending in a threat to economic growth.

It’s all Moody’s fault you see.  It’s not the banks that made a bunch of bad loans, failed to collect on them, failed to have collateral posted in at least the amount of the loan so they could seize it if the debtor didn’t pay, and ran utterly irresponsible and unsound leverage.

None of that is the reason that lending might be “curbed.”  The answer for “more growth” is always to add more debt than there is growth, and to do so continually on and on and on until the “prosperity” that you seek materializes.


If you’re jobless and broke the solution is to go out and borrow some money?  It’s not to become more industrious, cut down on the frills, turn down the thermostat in the winter or up in the summer, eat out less, take fewer (or no) vacations and get off your ass earlier in the morning and perform more work so you can earn more income?

Hmmmm…… what did I miss in this discussion?

Oh yeah, it appears to be coming back to me!

This was a Ponzi scheme and collapsed but politically it’s unpalatable to treat it as a Ponzi scheme and start arresting banksters, trying them and then getting the old Guillotine, polishing up the blade and putting it to work, either figuratively or literally!

Instead the Spainish, like the rest of us worldwide, took the political decision to bail out those who “didn’t commit any crimes” — never mind that Ponzi schemes are broadly illegal as they’re mathematically impossible to be sustained.

And that is exactly what we did here and they did there.

We will not recover economically, and there will be no solution either here or in Europe, until we face the truth and start taking intelligent reactions in response instead of covering up the stinking fish that’s been rotting in the corner by kicking it under the carpeting.

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