Next Spanish Bank up for Implosion is....?
Liberbank.
This is Spain's 8th largest lender. Another 'bad bank' set up to house the a 2011 merger of three equally awful banks.
The take-away here is that the ECB will bail-in and sell this one off the same way it did Banko Popular earlier in the week. And it will do so without shareholder input. This is unutterably tyrannical and tells you that the banking situation in Europe is bad not just from an asset persepctive but from a regulatory one as well.
Who in their right minds will keep money in a European bank if the owners of the bank can be subordinated to the whim of the ECB? This behavior on the part of the ECB will only intensify capital flight from the region, not stabilize it. It is better to get your money out of these banks now and before things get bad.
This is why politicians and academic eggheads should not be allowed to run economies. ECB President Mario Draghi is an idiot. So, by the way, is Angela Merkel, her finance minister Wolfgang Schauble and the rest of the literal morons that have crafted a monetary and political union built on an unstable foundation.
This is what is beginning to drive the appreciation of cryptocurrencies. And what will drive insane levels of capital flowing into and out of financial markets as it looks for a safe harbour in a cyclone. Singapore an Russia moving towards the Ethereum blockchain makes them look brilliant.
Russia's finances are so strong that it defies modern economic theory. If they add the blockchain to their financial system it will professionalize it overnight.
So, anyone still buying the massive bull run in the belly of the Spanish yield curve?
What's been happening here is the ECB's asset purchase program pushing Spanish debt up in price (and down in yield) as traders front-run the central bank to assure everyone that the situation is under control.
While the entire EU monetary system begs for more liquidity, or financial heroin.
MORE SOMA PLEASE!
Thanks to Zerohedge for the heads up on this.
http://www.zerohedge.com/news/2017-06-11/another-spanish-bank-about-bite-dust
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I have a different take on Super Mario and Obtuse Angel(a).
I don't think they're idiots at all, they've just taken on the roles as the ones willing to make the absurd calls and take the heat for it.
They, like many of the American politicians are getting rich by being idiots. Maybe they are idiots but they're stumbling over their own feet all the way to the bank.
They are idiots who serve German industrialists and bankers who have wanted to take over Europe for the past 70 years. The EU was designed from the ground up to roll wealth into Berlin and Frankfurt and demonize the lazy Spanish and Italians in the process.
They resisted a full monetary union with consolidated debt issuance for cheap political reasons and knowing it would bankrupt the 'PIIGS' in the process through labor arbitrage.
Bernard Connelly's Book The Rotten Heart of Europe covers this in detail and how Thatcher saw this coming and was betrayed by her closest aides to effect this. Now these morons are trapped at the end of the debt cycle and there's little they can do about it except talk tough and eventually try and have the IMF bail them out.
It may not work. and if it doesn't Katie bar the door.
But, idiots who have become wealthy while contributing members of society have gotten the shit-end of the stick.
And they are the morons who have the guns and the media.
That is all true. No argument. But they are going to push this too far and wind up hanging...
That's a tough call to make.
There's always a certain segment of any population that would choose the perception of "safety" over the uncertainty and risk of freedom. Oddly enough, it's those "safety-seekers" who will often commit horrific acts of violence to maintain that illusion.
Remember, "If you see something, say something"......to Big Brother.
We're getting very close to the 'first thing we do is hang all the lawyers' moment. The power elite, like Merkel and those behind her, are using the disaffected youth as the new brownshirts, especially here in the U.S., to effect regime change.
It's no different than the color revolutions backed by the U.S. in the past. The problem arises when the middle generation, my generation (I don't know how old you are), say enough! And the shooting begins.
I hear what you're saying and Merkel is nothing if not a skilled political cockroach. But, the economic reality is that these unsustainable systems will fall down and someone will take the blame for them... those who are the public face of it, people like Merkel, are the ones who will hang, while their puppet masters will keep on keeping on....
I turn 55 next month.
I think it was Dmitry Babich on RT who made the joke (that the rest of the world gets):
"Why don't you see color revolutions in the US? Because there are no US Embassies there."
Most Americans don't get it and they're dumb enough to believe that the schmuck in the whitehouse when it happens is the one responsible.
I'm 49 and chronicling the decline of the U.S. foreign policy regime is my day job. I think you'd enjoy my other posts on these subjects.
If you have time follow me on Periscope as well... www.periscope.tv/tomluongo
mondays at 8pm/fridays at 9pm. Geopolitics, crypto, movies and how to see the world differently.
Great chat, btw.