Posted on

SPECIAL SPANISH BAILOUT LIVE FROM CATALONIA

0700 GMT ( 0900  CET)

MY THOUGHTS: In this historical post you will have two kind of writings. One is related to the way I am living this historical day and the other is related to the historical events of the Spanish bailout. Look for MY THOUGHTS or THE FACTS to know what the writing is about.

THE FACTS: The bailout of Spain is main news on the BBC website. The BBC “UNDERSTANDS” that a eurozone finance ministers conference will take place today. The use of “UNDERSTANDS” is used, I imagine because Spain has not confirmed nor denied anything. The link: http://www.bbc.co.uk/news/business-18377482 The update I read is from 03:35 GMT.

MY THOUGHTS: This morning, as I open my first eye, the bailout of Spain came to my mind. Then I remembered that even Barack Obama was asking for an urgent response to help the weak banks. So, it seems that everybody has no problems in putting pressure to Spain to ask for a bailout for its banks. Unfortunately Barack Obama did not put pressure on Germany to accept eurobonds! For one moment I have asked myself that maybe I am wrong to support the strong Germany, and not so much, the Greek. After all, if the Greek spent so much was because the German banks were behind. Why should the Greek pay all the broken dishes? Anyway, I am going to have a splendid breakfast so that I can follow the events, the historical events of today with a bit of energy. But please, #donttellmerkel about my breakfast …

0800 GMT

THE FACTS: On Catalan public TV they show against the conference of Barack Obama where she says that if you only ask austerity then the situation can not improve. About the possible bailout, they seem to be like me: they see that international press talk about an imminent bailout today but they also say that the Spanish government last words were we had to waits for the private comapnies from Germany and the US who are looking into the banks finances. Now I know that the IMF said this morning that the Spanish banks require at least 40.000 millions of euros. This is about 1000 per Spanish capita! I also know thaht the eurozone finance minister conference takes places together. So the doubt is whether Spain will ask for a bailout or not.

0830 GMT

THE FACTS: I have realised that the international media act in two different ways! Some prefer to show trust in Reuters and others in the spokeswoman form Spain. So while the BBC speaks of an imminent bailout today (as Reuters reported from anonymous EU and German sources) other sources just listen to what the Spanish government has to say. This is the case of the websire of Foxnews. It is amazing because now anyone reading the main news around the world can know that in Spain we had a real estate bubble. Also the name of the spokeswoman, Saez de Santamamria, can be read in the Foxnews website. The Foxnews website page writes a bit in depth about the reasons why Spain is waiting for more time as it waits for the audits. Link: http://www.foxnews.com/world/2012/06/08/spain-bank-bailout-decision-could-come-soon/

0915 GMT

THE FACTS: Fresh news from 324 Catalan channel. The correspondent in Brussels, Salvador Sala, has said that the conference of the eurozone finance finance minister is taking place at 14 GMT. It is a video conference. Salvador Sala has also explained a bit about how the bailout can be ask. The rules say that a country must ask for a bailout. In this case the bailout would be asked, I imagine to Junkel. From Spanish media sources it may seem that the audits say more or less something similar to what the IMF has said this morning. The bailout would be a bailout lite because Greece, Ireland and Portugal have the markets closed so that Europe must pay for pensions, etc too. In the case of Spain the bailout would be for the banks while Spain would continue selling its bonds to get money.

MY THOUGHTS: The Spanish lite bailout could end in a hard bailout. Why? Because Spanish banks lately have bought a lot of Spanish bonds. If Europe bails Spain, will the banks continue buying Spanish bonds? Who will decide that????????? Maybe that is one of the reasons why Spain has not yet asked for a bailout. Until now Spain has used Spanish banks to sell its own debt. But if Europe bails the Spanish banks maybe Europe could ask its golden card: to be able to control Spanish government policies by BUYING OR NOT BUYING SPANISH BONDS THOUGH THE BANKS THAT WILL BE BAILOUT! In the next days we will see that the soft bailout is not so lite as it may seem. Only a fool would believe that Europe will give money to Spain without asking for hard conditions! The mechanism for the bailout will be Spain the first one to use it! It is call something like EFSF, the EUROPEAN FINANCIAL STABILITY FUND.

1415 GMT

THE FACTS: It is 15 minutes that the videoconference should have begun. It is not yet clear if Spain will ask for a bailout. But it seems that this afternoon Spain will know the terms and conditions of the bailout.

THE THOUGHTS: If Spain knows this afternoon the terms and conditions of the bailout how on earth can anyone want Spain to ask for the bailout just at the same time! We are talking about 40 billion euros and Spain cannot not have even a day left to look at thte terms and conditions? If I was from the Spanish government I will try not to ask for the bailout just today. I would wait. I am very sure that the terms and conditions must be very hard. On local tv they are “selling” this bailout as just a kinf of help from Europe to the Spanish banking system. A lot of emphasis is made in the fact that this is not a bailout of the Spanish economy but a bailout of its banks. I am worried that the condition is that Spanish banks stop buying Spanish bonds if Brussels does not want to. To accept a bailout is the first step to have later a total bailout.

I am the kind of people who believe that each one must try to support itself. This of asking help to Europe is against my principles! Before asking money to Europe the following things could be done:

– spend less in the Spanish army.

– close public tv channels. We have too many for a country with debts!

– bring an emergency law so that the cars are only used for emergency or paying very hight taxes. A lot of money goes to the Emirates and nearby countries!

– put the flats that cannot be sold to be sold to people from Europe who want to live in Spain.

– switch off some strret lights at night!

I would be the first one to ask money to Europe if Spain had had a tsuname or an earthquake. But to ask money to Europe because our banks were run by too eager people?

The Spanish banks are in such a situation because they were too fool and put all the eggs in the real estate to earn a lot of money. But German banks were very happy to put money into Spanish banks. But of course, the Spanish banks are the one who need bailout … Why should Spanish citizens should be hostages of German banks? What is that? If Germany did bad businesses with Spanish banks why should I be responsible for that? Did the German or Spanish banks gave me any cent when their business was earning a lot?

Well, Let’s listen to the news. I come here soon …
I have found a link to the IMF Spanish Financial System Stability Assessment: http://estaticos.elperiodico.com/resources/pdf/3/5/1339239979953.pdf

1700 GMT

Well, the time of truth has come! The videoconference of the eurogroup has ended! Now the eurogroup will have a press conference but it seems they will wait for De Guindos to speak first. De Guindos is the finance minister of Spain. He is one of the few people in Spanish governments that I have trust.

1706 GMT SOME NEW AGENCIES SAY THAT SPAIN HAS FINALLY ASKED FOR THE BAILOUT!!!!!!!! So, one moment …

1712 GMT I find nothing on Internet. So I will have to wait for De Guindos. Fortunately he speaks English so that people from around the world will be able to follow live what he says! In Catalan tv 24 hour channel they are having a special talk about what is going on and this evening there is a special program. It is very hard what is happening but at least this is not an internal coup d’etat or the start of a civil war. I think that in the long run the eurocrisis will be good for Europe. Maybe this Monday I should buy an account in Bankia! With Europe behind the Spanish system I feel much better!

1720 GMT Ten minutes left. I imagine that De Guindos is speaking with Mariano Rajoy.
MY THOUGHTS: I still find a bit crazy to ask for the bailout. We will need years for the banks to work properly so that we can sell them and regain the money!

1727 THREE MINUTES LEFT!
1735 LUIS DE GUINDOS is still not seen. The Catalan president will be live on Catalan TV to comment on the news from De Guindos. It is strange that Mariano Rajoy does not the same. While we wait … let me say that we do not know yet how much we will pay for the money. Let me say that if Europe lends 100 billions to Spain this means that each Spaniard will receive almost 3000 euros! This is a lot! So in a typical Spanish family with two jobless parent …
1945 DE GUINDOS is speaking. He is speaking in Castilian. He is just reading a note.
1946 DE GUINDO HAS ASKED FINALLY FOR THE BAILOUT FOR THE BANKING SYSTEM! Oh, my God! Then why they did not say that before!
1947 CNN HAS ASKED DE GUINDOS TO MAKE A SUMMARY IN ENGLISH! HE HAS REJECTED! HE HAS POLITELY REJECTED THAT! BRAVO FOR DE GUINDO! DE GUINDO SPEAKS PERFECT ENGLISH BUT HE HAS NOT WANTED TO SPEAK IN ENGLISH! I AM SURE THAT DE GUINDOS LIKE ME LIKES THE ENGLISH LANGUAGE BUT HE LIKE ME DOES NOT LIKE THOSE WHO DISPISE OTHER LANGUAGES. BRAVO, DE GUINDO!

1800 GMT Well, the bailout was not good news but at least WE MOVE ON … De Guindos looks very nervous. Maybe I am nervous too so I see more how he is! DE GUINDO SAYS: THE CONDITIONS WILL BE IMPOSED JUST TO THE BANKS, NOT TO SOCIETY! I think this is a lie! Spanish banks buy Spanish bonds! So one condition can be to buy less Spanish bonds! He is aksed when the decision of the bailout has beentaken. One of the good things of this bailout is that now we are talking in European terms! In any case, thanks Germany and Company forsaving the place where I currently live. WITHOUT GERMANY MAYBE I WON’T BE WRITING THIS.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s