SPAIN IS TEETERING + TOTTERING (BUT NOT TITTERING) – THANKS TO WALL STREET

Europe’s bubble is about to burst.  Spain is the latest European Union country to edge closer and closer to the financial abyss.  The European Union ushered in an era of cheap credit as investors flocked in to buy Euro zone bonds.  Those investments allowed municipalities in Spain to go on a buying binge with billions of euros that resulted in new housing, roads, parks, airports and government buildings.

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Spain now joins the ranks of Greece, Ireland and Portugal as European countries who have had to tap into the European Bank for bailouts.  The various regions around Spain are already informing the central government that unless it makes sizeable loans (billions of dollars) to their respective localities then those regions will be in danger of having government shutdowns.  The money is simply not there to keep things going for local government.

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At least there’s Federal Deposit Insurance here in this country.  Spain has nothing of the sort.  That is the only thing that prevented a run on the banks in this country in 2008.  There is no reason to think that Spain will fare as well if those localities do not receive massive financial help from the Spanish central government.

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What all this demonstrates is the worldwide reach of the Wall Street crowd and their duplicitous depravity in bundling good loans with bad loans into massively overvalued bond instruments that were then sold not just here in this country but all around the world, including Spain. Banking is an international presence and whatever was happening on Wall Street was certainly taking place in Madrid, Seville, Toledo, Barcelona and on down the line.

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If Europe finds itself bailing out yet another government (Spain) after doing so in Greece, Portugal and Ireland then countries like Germany and France will be pushed to unchartered territory.  There might not be enough in the Euro zone banking system to simultaneously contain the hemorrhaging of public debt in multiple countries.  Yet, unless Spain’s government joins the ranks of countries like Portugal, Ireland and Greece in receiving bailout money they’re probably looking at financial ruin.

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Thanks Wall Street!

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PETE/MARIN
(Remember, We Ride So You Don’t Have To!)
https://paulrevererides.wordpress.com

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