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Spain's Banking System: Circling The Drain
The latest data releases from Spain show a – not entirely unexpected – worsening of the banking system's problems. Although no-one can be surprised by this, it is a reminder that the planned bailout may find itself a few euros short in the end. How many euros exactly no-one knows yet: as we always point out, this is very much a moving target – and a fast moving one at that. The current plan provides for €100 billion or "hopefully less". The size of the bill will of course also depend on whether there will really be haircuts for the various species of bondholders. As we have pointed out previously, the plan ... (full story)