Monday, June 11, 2012

spanish bailout

If this all sounds too complex to you, Spain, PIGS, ECB, IMF, EFSF, EUR, ESM, English law bonds, Cyprus, Ireland, Finland Neverneverland, etc .... What just happened, or didn't quite happen, or was promised to happen, or hoped might be accomplished, was that the failing Spanish banks were promised a new loan to shore up their balance sheets and the Spanish government, AKA the Spanish taxpayers, have been put on the hook to pay it back. Or, more basically, the bankers and the politicians are all trying to fix a problem (too much debt) by creating more debt. Think it'll work this time?

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