Socio-Economics History Blog

Socio-Economics & History Commentary

Europe Braces for Euro Collapse; Now Is the Time To Move!

  • Europe Braces for Euro Collapse; Now Is the Time to Move! 
    by http://larouchepac.com/home 
    The crisis in Greece and Spain has now reached such a breaking point, as of Friday afternoon, that the existence of “Plan B” can no longer be kept a secret.  On Sunday, Richard Ward, the CEO of Lloyds of London, admitted, in an interview with the Sunday Telegraph, that the insurance underwriter has devised plans for the breakup of the EMU. “We’ve got multi-currency functionality and we would switch to multi- currency settlements if the Greeks abandoned the euro and started using the drachma again,” he acknowledged.  The Franco-German firm Euler Hermes, which provides credit insurance for euro-denominated business, is considering cancelling future credit default swap contracts for Greek debt denominated in euros—also in anticipation of a Greek departure and possible breakup of the EMU.  And the head of the Swiss National Bank, Thomas Jordan, has also acknowledged that his government is working up contingency plans for the breakup of the euro.
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    This is but the tip of the iceberg.  There is no doubt that emergency meetings are taking place over this holiday weekend all over Europe and the United States, as the fate of the entire trans-Atlantic financial system hangs in the balance over the next hours.  But, as Lyndon LaRouche emphasized Saturday, there is no alternative for Europe or the United States to an immediate return to Glass-Steagall.  For Europe, this means the cold turkey cancellation of both the Maastricht and Lisbon treaties and a return to regulated, sovereign currencies, as existed under the European Rate Mechanism (ERM).  By imposing Glass-Steagall separation, wiping out the gambling debts, and walking back from Maastricht and Lisbon, Europe—like the United States—can launch a recovery program, based on a credit system and great projects.
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    Further highlighting the immediacy of the trans-Atlantic disintegration, over the weekend, the governor of the autonomous Catalan region of Spain, one of the wealthiest parts of the country, announced that they would run out of money at the end of the month.  The former prime minister of Greece, Papademos, warned that Greece runs out of cash at the end of June—unless the EFSF and IMF bailout funds come through.  And the head of the now-nationalized Bankia in Spain gave a series of interviews at the end of the week, insisting that Bankia would not need anymore bailout money—beyond the 23.5 billion euro price already on the backs of Spanish taxpayers.  Bankia officials were racing to announce a plan to sell off mortgage and corporate assets to halt the panic, before banks and markets reopen in Europe on Tuesday.
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    As we know, the disintegration now of the trans-Atlantic financial and monetary system is totally tied up with the issue of strategic war and peace.  In the past 48 hours, there has been a major escalation in the Syria crisis, with allegations of a massacre in the town of Houla near Homs triggering a heavy British push for outside intervention.  Russia convened an emergency meeting of the United Nations Security Council on Sunday afternoon.  The Syrian government not only declared they had nothing to do with the confirmed deaths in Houla, but that they would conduct an independent investigation and share the results immediately with the UN monitoring team.  Whatever happened inside the UN Security Council chambers, when General Mood delivered his preliminary report, pandemonium erupted when British, German, and French UN ambassadors flagrantly lied to reporters immediately afterwards, claiming that evidence confirmed that the Syrian government had carried out the massacre, when no such evidence had been presented, and the letter by the Security Council was endorsed by the Syrian ambassador.  The Syrian ambassador delivered a detailed account of a nine-hour battle launched by armed insurgents that spread killings to three villages in the area, and announced that the Syrian inquiry would be completed and made public in three days.
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    Lyndon LaRouche emphasized that the Syria situation is actually targeted at Russia.  The British remain desperate to get the Russians to blink, whereas the Putin government shows not the least inclination to do that.  In fact, Putin, Medvedev, Makarov, and others are baiting London and Obama by using every opportunity to flaunt their arsenal of thermonuclear weapons as a reminder that, under present circumstances, general war is tantamount to extinction.
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    As Mr. LaRouche concluded a discussion on Sunday afternoon:  Glass- Steagall is now a necessity, because the ability to save the U.S. system depends on Glass-Steagall. We’ve got to dump all government accountability for covering gambling debts.  This is the only option to save the United States!  And if the United States is not saved, there is no possibility that the rest of the world, starting with Europe, can survive.  An immediate action to get the Glass-Steagall process in place in the United States is now crucial.  It is the first step towards freezing the onrushing global financial disintegration that is already racing ahead of all of the hyperinflationary bailout efforts to halt the crash. This is the singular, urgent priority for our efforts going into Monday.

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May 30, 2012 Posted by | EndTimes, GeoPolitics | , , , , , , , , , , , , , , , , | Comments Off

LaRouchePAC: Game Over – Spanish Collapse Can Bring Down The Trans-Atlantic System This Weekend !

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May 30, 2012 Posted by | Economics | , , , , , , , , | Comments Off

International Banking Source Update On Beginning Derivative Default And Huge JPM Loss!

  • Disclaimer: I am unable to confirm or deny the accuracy of this source! However, it does provide confirmation of what Jim Willie (JW) mentioned earlier! Draw your own conclusions!
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    International Banking Source Update On Beginning Derivative Default And Huge JPM Loss! 
    by Steve Quayle, http://stevequayle.com/ 
    May 29, 2012
    Steve,
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     Here is the latest run down on JPM. They are stopping their share repurchasing for this very reason. You see their is a two front issue with JPM ; one, their naked shorting of the silver market which is well documented and two, their massive derivative exposure.
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     The derivative market that JPM plays in is the CDX.NA.IG.9, when factions within their London office (London Whale) made overly leveraged swaps, hedge funds smelled blood and so did a few banks. You see any moves that JPM does here on out exposes their weakness further. Which they can not afford any more exposure thus they are not buying back any more shares which is the equivalent of cutting an artery in a pool full of sharks. The strategy they are taking right now is to sit through the storm and ride it out as they can do nothing else for any action will make them even more vulnerable.They can not absorb hits in both JPM SLV and CDX.NA.IG.9. Inactivity is not something they want to do it is something they have to do. There is no other choice for them.
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     JPM is now in a panic as they are trying to unwind their losses without further signaling loss which will cause the other Big Banks like RBS, UBS, SocGen, PNB and Goldman Sachs will make at least $500 billion each on JPM’s position. They will do this by cooking the books.
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     Steve this is the truth, JW and others are right about the losses of JPM’s position, the reality is…brace yourself, the loss is over $150 billion!!! That is from the $100 billion loss in CDX and the $50 billion in other over-leveraged bets against it.
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     Massive is an understatement. The Fed and Dimon is working overtime to cover up the fissure, they can keep the sharade going for only so long. Many were looking for the collapse to begin in the derivative market, this is the sign everyone has been looking for, again…BRACE YOURSELF.
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    Regards,
    V.

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May 30, 2012 Posted by | Economics | , , , , , , , , , | Comments Off

‘Keep Calm, Your Cash is Safe’: UK Banks Ordered To Display Details of Savings Protection To Head Off Bank Runs!

  • ‘Keep calm, your cash is safe’: Banks ordered to display details of savings protection to head off bank runs! 
    By Lee Boyce, http://www.dailymail.co.uk/
    Banks will be required to display notices in branch and on websites that tell customers how much of their savings are protected if the bank goes bust, the Financial Services Authority (FSA) said today.
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    The plans – outlined in December – will also apply to building societies and credit unions. They will see stickers and posters displayed prominently in branches to draw attention to savings protection limits.
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    UK savers’ deposits are protected up to £85,000 under the savings safety net – the Financial Services Compensation Scheme (FSCS). Foreign banks with branches in the UK which are not covered by the scheme will need to make this clear while stating which national scheme is providing protection.
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    The FSCS, which protects consumers when financial institutions go bust, said the plans are a ‘step in the right direction,’ but is urging firms to go beyond the FSA’s minimum requirements.
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    Mark Neale, chief executive of FSCS, said: ‘The banking crisis shows how important it is for consumers to have clear information about FSCS protection. ‘We never again want to witness the run on a bank because people do not know their money is protected. Since then, the industry has improved the quality of information it gives to consumers about FSCS.
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    ‘However, it needs to do much more to provide clear, accurate information about the protection we provide. This is essential to building consumer confidence, and is not limited to deposits. It is something that is normal in other parts of the world.’
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    read more!

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May 30, 2012 Posted by | Economics, Social Trends | , , , , | Comments Off

Egon Von Greyerz: $100 Trillion+ To be Printed, Expect Capital Controls!

We will all be trillionaires but can’t afford breakfast !

  • Greyerz – $100 Trillion+ to be Printed, Expect Capital Controls! 
    by www.kingworldnews.com
    Today Egon von Greyerz told King World News, “The tens of trillions of dollars that needs to be printed is without derivatives.  With derivatives we are talking about hundred of trillions of dollars that may need to be printed.”  Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland.  Von Greyerz also said, “We will have exchange controls in virtually every country.  I can see this coming to the US in the next year or two.”  But first, here is what Greyerz had to say about what is happening in Europe:  “The bail out for Spain’s Bankia is now up to $25 billion in refinancing requirements, but that’s just the beginning.  We’re looking at country after country here where the dominos are falling.  The refinancing requirements worldwide are getting astronomical, and they will escalate at a faster rate.”
    …
    “I’ve said to you that I expect the requirements to be in the tens of trillions of dollars, and that’s just for governments.  If you add to that corporate debt, private debt, mortgage debt, you are talking about sums that are hard to imagine. S&P estimated that over the next few years, corporate debt refinancing will be roughly $30 trillion.  That’s just corporate refinancing.  If you add in the mortgage markets, the number is extremely high, and that will need to be printed by someone because the money isn’t there.  No one has the money….
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    read more!

Feel fee to wipe your ass with it !

QE to infinity is coming!

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May 30, 2012 Posted by | Economics | , , , , , , , , , , | Comments Off

John Butler on The Dollar Liability And Gold’s Role as The Insurance!

  • Japan and China to start direct currency trading on Friday! 
    by japantoday.com
    Japan and China will start direct currency trading this week, Tokyo said Tuesday, the first time Beijing has let a major unit other than the dollar swap with the yuan.
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    The move, which will scrap the greenback as an intermediary unit, comes as China introduces measures as part of a long-term goal of internationalizing its currency to rival the dollar.
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    The two-way trade will also be allowed to move in a wider range than the narrow band at which the dollar and yuan change hands, Dow Jones Newswires and the Nikkei business daily reported.
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    read more!

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May 30, 2012 Posted by | Economics | , , , , , , , , , , , , , | Comments Off

New Face of Terror: FBI Creates Bogeyman Out of Occupy!

May 30, 2012 Posted by | Social Trends | , , , , , , , , | Comments Off

Stephen Lendman: Daily Kristallinacht in Palestine! The Genocide & Ethnic Cleansing of The Palestinians!

  • Daily Kristallinacht in Palestine! 
    by Stephen Lendman, http://sjlendman.blogspot.com/
    Imagine daily life under these conditions. Occupation harshness enforces institutionalized terror. Fear is constant. Collective punishment is policy.
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    Peaceful public demonstrations are assaulted. Free expression and movement are prohibited. Population centers are isolated. Borders are closed. Normal daily life is denied. Economic strangulation and institutionalized racism are imposed. So are curfews, roadblocks, checkpoints, separation walls, electric fences, and other barriers.
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    Neighborhood incursions, land, sea and air attacks, bulldozed homes, land theft, ethnic cleansing, slow-motion genocide, targeted killings, mass arrests, torture, and gulag imprisonment reflect daily life for praying to the wrong God.
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    Fundamental civil and human rights are denied. Crimes of war and against humanity repeat without redress. Wanting to live free in sovereign Palestine is called terrorism.
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    Punitive taxes are imposed. Few services are provided. Vital ones are lacking or inadequate. Palestinian lawmakers are imprisoned for belonging to the wrong party. Fishermen are attacked at sea. So are farmers working their land. Trying at the wrong time risks arrest, injury or death. Crops and orchards are destroyed. Settlers commit regular attacks. Courts provide no help.
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    Gaza is suffocating under siege. Scoundrel media policy enforces coverup and denial, blame the victim, and portray Israel as the region’s only free democratic state. Reality reflects police state harshness. It persists without end.
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    Even Jews challenging injustice are targeted. Rogues tolerate no opposition. Israeli ones have few equals. On May 24, Haaretz headlined “Amnesty International: Israel uses excessive force against Palestinians,” saying:
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    AI’s 2012 annual report “is highly critical of Israeli policies toward the Palestinians….” It charges Israel Defense Forces with “frequent” use of “excessive, sometimes lethal force against demonstrators in the West Bank and civilians in Gaza.”
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    Dozens are lawlessly killed, including children. Blockading Gaza enforces a “humanitarian crisis.” Restricting free movement was also criticized.
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    read more!

Revelation 2:9 – …. and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.

“ … it turns out the creation of Israel had not, after all, been a haphazard fight in which the Arabs fled their homes at the directives of their own leaders, but it had been an unprovoked, systematic campaign of ethnic cleansing by the Jewish militia involving massacres, terrorism and the wholesale looting of an entire nation.” - from 4:22 onwards

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May 30, 2012 Posted by | GeoPolitics, Social Trends | , , , , , , , | Comments Off

Spiritual Battle To Stop Dark Bilderberg Forces!

May 30, 2012 Posted by | EndTimes, GeoPolitics | , , , , , | 3 Comments

Russia Turns Up The Nuclear Rhetoric!

Click on image to goto article!

  • This piece by the Financial Times incorrectly downplays Medvedev’s warnings of nuclear war. ‘Professor’ Medvedev is not known to be a person who indulges in nuclear Armageddon rhetoric. It is a clear indication that Russian interests are being trampled upon in Syria and Iran. He is saying: “Here is the line in the sand! Cross it and the Russian Bear will bite back!”. Medvedev, the chess player, is making tactical moves and warning US, NATO to back off.
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  • NATO and US understand the warning. They will go to plan B. This calls for the Rothschild military fiefdom, Zionist ’666′ Israel to do the dirty work by starting off the Satanic World War 3, Greater Middle East War! Publicly, and presented in the western MSM, they will act out the scenario that Zionist ’666′ Israel (the Satanic counterfeit) is misbehaving and acting independently of US-NATO. This is to distance themselves from Zionist ’666′ Israel when the war starts. The major powers want to fight this war via their proxies: Zionist ’666′ Israel vs Muslim World. A direct confrontation between US+NATO against Russia+China means nuclear Armageddon. I do not believe they want global nuclear war, at least in the early stages. However, Zionist ’666′ Israel will very likely employ nuclear weapons in the Greater Middle East War.
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  • Rumours are swirling that Saudi Arabia has agreed to accept Russia and China protection and sell oil in other currencies ie. abandoning the USD. I am quite sure the Anglo-American western Illuminati are not blind to this. They will use the Zionist state to destroy Saudi Arabia when they start to abandon the petrodollar. Much of the Persian oil powers will be destroyed in this coming war. Zionist ’666′ Israel will also be destroyed. China will suffer and so will Europe because of destruction of oil supplies. Russia and America with their large oil reserves, less so! (emphasis mine)
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    Russia turns up the nuclear rhetoric! 
    By Charles Clover in Moscow and Geoff Dyer in Chicago, http://www.ft.com/ 
    Before Dmitry Medvedev’s valedictory speech earlier this month, the outgoing  president awarded medals to dozens of Russians, including a theatre director, a  policewoman and the chairman of the Russian hockey federation. Then, taking the  podium in a glittering Kremlin ballroom, Mr  Medvedev declared that Russia’s younger generation needed positive role  models to inspire them towards “success in literature, art, education, and” – he  paused wistfully – “nuclear weapons”.
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    “They may still come in handy,” he said, apropos, seemingly, of nothing. “We’re not going to use them, but let’s still keep them around, because we have  a big country, a complex country. We must value it and protect it.”
    ….
    In speech after speech this month, Russian officials have tried to out-Dr  Strangelove each other in warning of a potential nuclear conflagration. The  rhetoric, which US analysts tend to dismiss as harmless, coincided with the test  launch on Wednesday of a new generation of strategic missiles.
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    The nuclear hyperbole seems directed at the US and its allies, who announced  at an annual Nato summit in Chicago this week the formal beginning of a  much-vaunted anti-ballistic  missile system based partly in eastern Europe. This is nominally aimed at  Iran but, Russia suspects, intended to neutralise its own beloved nuclear  deterrent.
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    If that were to happen, said General Nikolai Makarov, chief of Russia’s  general staff, it could lead to an “illusion of security”, which could lead to  war. Countries allowing the missile defence shield on their soil, Gen Makarov  said, risked a Russian nuclear first strike. “A decision on pre-emptive use of  the attack weapons available will be made when the situation worsens,” he  breezily told a news conference this month.
    …
    “For most Russians, nuclear security doesn’t matter. It’s all taking place in  a parallel reality, unconnected to mainstream politics,” says Fedor Lukyanov,  chief editor of the Moscow-based journal Russia in Global Affairs.
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    But tell that to Russia’s financial markets, which sold off last week when Mr  Medvedev engaged in more of the recreational paranoia that has come to be the  hallmark of US-Russia relations.
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    Warning the audience of a legal affairs conference in St Petersburg against  interference in third-party global conflicts, he said: “At some moment such  actions, which undermine sovereignty, can end with a full-fledged regional war,  or even, and I don’t want to scare anybody, the use of nuclear weapons.” The  stock market promptly dived 3.5 per cent.
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    Talking up the nuclear deterrent is a sure sign the Kremlin is nervous, say  analysts. US experts insist that the ballistic missile defence system poses no  threat to Russia’s nuclear missiles.
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    Russia, however, is most concerned about the final stage of the Nato project,  not due until 2020, which will see the introduction of the SM3 missile  interceptor. This would be capable – in theory – of hitting an Iranian  intercontinental ballistic missile and, warn Russian analysts, possibly Russian  ICBMs as well.
    ….
    The debate about missile defence is therefore, says Mr Rogov, “about  technologies on both sides that don’t yet exist, and may never exist”. He adds  that the US is “deploying technology against Iranian ICBMs which Iran doesn’t  have, while Russia is concerned about similarly non-existent American  interceptors”.

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May 30, 2012 Posted by | GeoPolitics | , , , , , , , , , , , , , , , , | Comments Off

Gold Bar Demand in China Surged 51% to 213.9 Tons In 2011 !

  • Gold Bar Demand in China Surged 51% to 213.9 Tons In 2011 ! 
    by http://www.goldcore.com/ 
    … A reminder of the sharp increase in demand for gold and silver, particularly store of wealth demand, in recent years was seen in the figures released by the China Nonferrous Metals Industry Association in Shanghai today.
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    China’s gold consumption rose 33% to 761 tons in 2011 and China’s silver consumption rose 6.8% to 6,088 tons last year. China’s gold consumption rose 190 metric tons last year to 761 tons, Wang Shengbin, China Gold Association Vice Chairman, said in a speech in Shanghai as reported by Bloomberg.
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    China’s jewelry consumption jumped 28 % to 456.7 tons last year, gold bar consumption surged 51% to 213.9 tons and gold coin consumption gained 25% to 20.8 tons, Wang said
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    China’s silver consumption, including industrial use, jewelry and coins, rose 6.8% to 6,088 metric tons last year, the vice chairman said. The amount shows a surplus given China’s output of 12,348 tons last year, which gained 6.3%, Wang said.

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May 30, 2012 Posted by | Economics | , | Comments Off

Europe’s Debtors Must Pawn Their Gold for Eurobond Redemption!

It’s a question of when?

  • This is just another scam for the financial rape of the sheeple (to steal their gold) by the Illuminist banksters! If gold is a ‘barbarous relic’ why are these banksters asking for gold. This move solidifies gold’s return as a monetary asset in the global financial system. Do not be taken for a ride. Gold is money and has been so for the past 5000+ years. Fiat currencies, the creation of the Illuminist banksters, have no intrinsic value and are backed by NOTHING! They are a CONfidence JOB!
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    Europe’s debtors must pawn their gold for Eurobond Redemption! 
    By , http://www.telegraph.co.uk/
    Southern Europe’s debtor states must pledge their gold reserves and national   treasure as collateral under a €2.3 trillion stabilisation plan gaining   momentum in Germany.
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    The German scheme — known as the European Redemption Pact — offers a form of “Eurobonds   Lite” that can be squared with the German constitution and breaks the   political logjam. It is a highly creative way out of the debt crisis, but is   not a soft option for Italy, Spain, Portugal, and other states in trouble.
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    The plan is drafted by the German Council of Economic Experts and inspired by   Alexander Hamilton’s Sinking Fund in the United States — created in 1790 to   clean up the morass of debts left by the Revolutionary War. Flourishing   Virginia was comparable to Germany today.
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    Chancellor Angela Merkel shot down the proposals last November as “completely   impossible”, but Europe’s crisis has since festered, and her Christian   Democrat party has since suffered crushing defeats in regional elections.
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    The Social Democrat opposition supports the idea. The Greens say they will   block ratification of the EU Fiscal Compact in the German Bundesrat — or   upper house — unless Mrs Merkel relents.
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    “The Redemption Pact cleverly combines the advantages of lower interest   rates through joint European borrowing with a reduction of debt,” says   Green leader Jürgen Trittin. “Joint liability would be limited in   both time and scale.”
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    read more!

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May 30, 2012 Posted by | Economics | , , , , , , , , , | Comments Off

Newmont CEO: China Doing Everything It Can To Get Gold !

Remember the Golden Rule: He who has the gold makes the rules!

  • The global fiat monetary system is dying. Central banks throughout the world are accumulating gold and dumping the USD. Gold is returning as money/currency in the new monetary system! Whatever currency is introduced it will be backed by gold. Do not be too concerned with the current gold/silver prices smash down. It is a great opportunity to buy!
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    Newmont CEO – China Doing Everything It Can to Get Gold ! 
    by www.kingworldnews.com
    Today the CEO of Newmont Mining, one of the largest gold producing companies in the world,  told King World News that China is doing, “everything they can to assemble a bigger gold portfolio.”  Richard O’Brien, the CEO of $24 billion Newmont Mining, also said, “I believe inflation is going to rear its ugly head.”   But first, when asked about China’s insatiable appetite for gold, O’Brien responded, “Obviously China is now both the world’s largest producer of gold, as well as the largest consumer of gold.  Not one ounce shows up as legally leaving China.  I think that’s a strong statement that the Chinese people and the Chinese government are looking to hold on to and expand their holdings of gold over time.”
    ….
    “It makes sense.  They have the most exposure to the US dollar.  They know what I know about the US dollar.  So they would like to have gold because it generally trades negatively correlated to the US dollar. How they get that exposure is a really interesting question because as soon as they broadcast that they want more gold in their portfolio, gold prices will go up just because they said that because the market is so thin….
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    read more!

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May 30, 2012 Posted by | Economics | , , , , , , , , , | Comments Off

Bank of England Prepares Plans for Euro Collapse!

  • The world is heading towards a global economic, financial and monetary meltdown. The detonation will start in the PIIGS, spread to the rest of Europe, UK, Japan … USA. Major fiat currencies will collapse: Euro, UKP, JPY … and finally the USD. I do not believe minor fiat currencies will be unaffected by the hyper-inflation onslaught! All fiat currencies are going down the toilet bowl of currency debasement, currency wars! Got physical gold yet?
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    Bank of England prepares plans for euro collapse! 
    By , http://www.telegraph.co.uk/ 
    The Bank of England is poised to cut interest rates or launch another round of   quantitative easing if the euro collapses, it emerged on Monday.
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    A senior official for the Bank said the measures would “again play [their] part in mitigating the impact” of Greece or other countries   leaving the single currency. The comments come after the head of the IMF suggested last week that British interest rates may have to be cut to zero if the economic situation   deteriorates.
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    The Bank has already completed a quantitative easing programme, effectively printing more money worth £325billion and this may be extended again. Yesterday, David Cameron hosted a meeting with Sir Mervyn King, Governor of the Bank; Lord Turner, the chairman of the Financial Services Authority; and the Chancellor, to discuss contingency plans to deal with the collapse of the euro.
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    There is growing speculation that Greece may be forced out of the euro following new elections next month, if a coalition government cannot be formed that will back austerity measures.
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    In Britain, ministers have already overseen extensive contingency planning to prepare for the possible impact of the break–up of the euro. This extends from asking banks to insure their holdings in Greece to considering new border controls to prevent a wave of immigration from beleaguered European economies. A disorderly eurozone break–up could spark another deep recession comparable to that caused by the banking crisis.
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    read more!

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May 30, 2012 Posted by | Economics | , , , , , , , | Comments Off

Shares in Spain’s Bankia Plunge on Bailout Plan!

Spanish govt bond yield soars!

  • Shares in Spain’s Bankia plunge on bailout plan! 
    By CIARAN GILES, via http://www.businessweek.com/ 
    MADRID
    Concern over the bailout plans for troubled Spanish lender Bankia  and the country’s ability to finance itself sent the nationalized bank’s share price plummeting and Spain’s borrowing costs soaring Monday.
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    Bankia’s shares were down 21 percent to (EURO)1.23 after trading following the bank’s announcement Friday that it will need (EURO)19 billion ($23.84 billion) in state aid — the country’s biggest bailout — to shore itself up against its bad loans. The shares had closed at (EURO)1.57 before trading was suspended Friday.
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    Investor remained nervous over Spain’s finances and whether it might soon join the ranks of Greece, Ireland and Portugal and seek an international bailout. The interest rate, or yield, for 10-year bonds on the secondary market — a key indicator of market confidence in Spain’s ability to raise funds — jumped 17 basis points in morning trade Monday to at 6.46 percent.  A rate of 7 percent is considered unsustainable in the long run.
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    In comparison, Germany’s bonds, seen as a safe haven investment, were at 1.38 percent, 508 basis points lower than Spain’s. Trading on Madrid’s main Ibex 35 share index was down 1 percent.
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    read more!

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May 30, 2012 Posted by | Economics | , , , , , , , , , | Comments Off

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