This Sunday there are general elections in Spain but because the markets are abstract things without soul their only logic is to win money or not to lose money so that the markets don’t pause in its attack to the Spanish sovereign debt. If the markets were run in a human way it would be agood idea that the days before a general election they could show a bit of respect for the democracy process which is going to take place.
Anyway, I was just wondering if Spain would need a bailout just some days before the election or just some days after! This is crazy! Markets run so fast and democracy runs so slow! Even if Mariano Rajoy is elected this Sunday he won’t be in charge until some weeks! So, who would ask for a bailout if needed?
In any case, Can Spain ask for a bailout? Is there money left for a Spanish bailout? And for a Spanish and Italian bailout?
If the ECB does not start printing money we are heading for disaster. It is obvious that printing money to rescue countries is not a part of the ECB task but I imagine that the responsability of the ECB is to rescue the eurozone at least! And if Spain and Italy falls then the eurozone falls!
I think that Germany is making a big mistake! It is not realizing that it is better to have a weak euro than not have a common currency. Eurozone countries should converge to German standards but Germany should try to converge too into the eurozone as a whole!
- Spain Is Going To Need The Kind Of Bailout Italy Got (businessinsider.com)
- Job-hungry Spaniards seen electing center-right (seattlepi.com)
- Italy catches a cold, eurozone sneezes (ftalphaville.ft.com)
- Spain’s borrowing costs increase (bbc.co.uk)