Eurogroup statement on Spain

Eurogroup statement on Spain

From europa.eu

The Eurogroup supports the efforts of the Spanish authorities to resolutely address the restructuring of its financial sector and it welcomes their intention to seek financial assistance from euro area Member States to this effect. The Eurogroup has been informed that the Spanish authorities will present a formal request shortly and is willing to respond favourably to such a request. The financial assistance would be provided by the EFSF/ESM for recapitalisation of financial institutions. The loan will be scaled to provide an effective backstop covering for all possible capital requirements estimated by the ... (full story)

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Jun 9, 2012 1:42pm

The Eurogroup wants the Spanish government to stand behind these loans to the banks. If I lived in Spain I'd be totally against this. Spain can barely meet their current obligations then add an additional 100 Billion to that total?

Something smells here.

fxsport

Jun 10, 2012 5:13am

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Quoting Loadedgun

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It seems to me complaining will not do - bad economics yes but the dynamics around it appear profitable for financial markets (increased risk and hence reward) especially as speculation increases volatility. The question is how much of this price action can retail traders grab? I guess that depends on the individual and his/her trading skills.

Ignored

Excellent observation Loadedgun!

Jun 9, 2012 6:39pm

Italy next

Jun 9, 2012 2:26pm

It's like Euro lala land taken down Greece (though Greece was at fault and dug its grave), they are looking to dig another grave for another country. Again Spain dug their own grave - so rise up the hard working Spainish and kick your useless government and their crap policies to hell. Simply ridiculous this Euro lala zone is.

Monday will be what I said earlier in any case. Enjoy the ride for pips hunter.

Loadedgun

Jun 9, 2012 8:33pm

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It seems to me complaining will not do - bad economics yes but the dynamics around it appear profitable for financial markets (increased risk and hence reward) especially as speculation increases volatility. The question is how much of this price action can retail traders grab? I guess that depends on the individual and his/her trading skills.

espen

Jun 9, 2012 2:48pm

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We all saw what happened when U.S. consumers couldnt pay their mortgages, what is supposed to happen when the euro countries can't pay their loans? Do they expect a wizard to fly in and fix it all?