"Next!" - After Greece, now Spain

[Skybird]

http://www.businessspectator.com.au/bs.nsf/Article/Spain-Greece-eurozone-crisis-banks-Germany-pd20100616-6G5DY?OpenDocument


Just like Greece, Spain enjoyed much lower interest rates under the euro than under its old national currency. But whereas in Greece the lower interest rates were taken as an opportunity to incur greater public deficits, in Spain it was the private sector which accepted the invitation to go deeper into debt.
(...)
In all likelihood, Spain’s banks will need to be recapitalised out of the trillion dollar fund the EU agreed on in May. This would only confirm what many observers had suspected from the beginning – the EU measure is first and foremost a bank bailout, not a vehicle to save the euro.

Whether this enormous amount of capital will be sufficient is questionable. Last week, EU president Herman van Rompuy indicated that the initial stabilisation package may need to be extended – before the first euros out of this package have actually been paid.

The ordinary man on the street knew it. Every normal citizen saw it coming. Just politicians soon will start to claim that they could not have known anything, and that the monetary union is great, and that this is not the time to point fingers, and that they are very optimistic about the future. And blah and blah and blah blah blah, and babalabah.

Who gets the lion's share of the bill? The Germans, as usual. Who else.

[XabbaRus]

Well Germany did push for the euro...though I do sympathise why should Germany bail everyone out.

I see this French city hot shot was moaning that Britian didn't chip in to bail out Greece and said we shouldn't expect help if we need it.

WTF??? Britian isn't even in the Euro...so why should we...as if we don't have enough trouble.

[Jimbuna]

Well Germany did push for the euro...though I do sympathise why should Germany bail everyone out.

I see this French city hot shot was moaning that Britian didn't chip in to bail out Greece and said we shouldn't expect help if we need it.

WTF??? Britian isn't even in the Euro...so why should we...as if we don't have enough trouble.

Well you'd expect to hear that.....from a Frenchman :yep:

[Skybird]

Well Germany did push for the euro...though I do sympathise why should Germany bail everyone out.


Germany, France, and two or three others pushed it, yes - or better: some elitist leaderships and lobbies did so against the wish of the wide public, and against all economic reason and against all warnings and against all lack of economic sufficient preparation. they wanted a symbolic act, and that is what they got: a symbolic act of not more substance than just theatralic symbolism.

It is a mistake the roots of which lie way back in the past.

But it also is basing upon economic and financial mismanagement since decades, taking place due to business lobbies corrupting politics as well as party-political bets for power resulting in trying to bribe voters with more financial gifts (distorting market mechanisms) than the financial netto income of states and national economies could afford. This took place completely independent from the Euro. we lived beyond our means, and when people now protest against policies to cut spendings, then they demonstrate in principal against their own children's future chances. Nice.

Not that much is left for the next generation anyway. In eating up and totally consuming what there once has been is resources and financial potentials, we already have done a magnificent job.

[UnderseaLcpl]

Not that much is left for the next generation anyway. In eating up and totally consuming what there once has been is resources and financial potentials, we already have done a magnificent job.

I agree with most of your assesment, Sky, but I have to take exception with this. Unifiyifying the currency was not a good idea, and neither was Federalizing the current EU member nations, but it had nothing to do with a dearth of resources. There are quite enough left for the next generation.

Out of respect for our mutual agreement that we are at an impasse, I won't waste your time with further discourse unless you want to go into the subject.

[Snestorm]

Who gets the lion's share of the bill? The Germans, as usual. Who else.

On a per person basis?
Scandinavia.

[Snestorm]

. . . but it had nothing to do with a dearth of resources. There are quite enough left for the next generation.

Here we disagree. In many places there aren't enough resources to support this generation.

[Oberon]

Not that much is left for the next generation anyway. In eating up and totally consuming what there once has been is resources and financial potentials, we already have done a magnificent job.

Back when this all started, I recalled a new Canadian leader coming in, or it could well have been a county head/governor, whatever it was though he admitted that cuts were going to have to be made, big cuts and naturally that got a lot of backs up, so he went out to a meeting of the biggest argumentative group and basically put it to them that if they didn't make cuts now, it would be their children whose lives they would ruin whilst they fiddled. A lot of people shut up once they realized.

[Snestorm]

Not that much is left for the next generation anyway. In eating up and totally consuming what there once has been is resources and financial potentials, we already have done a magnificent job.

I don't think it's all about passing the bill on to the next generation any longer.

I do think that we are the older tier of that generation, and that we will still be here when that bill is presented for payment, or collapse.
I think we can all predict the outcome.