Barcelona Asks Madrid For Bailout

Rajoy speaks...

Three regions request a huge bailout, and a hidden bank run is under way.

Catalunia will tap a national bailout fund after Spain’s most indebted region was shut out of financial markets, suffering the type of funding squeeze that led Greece, Ireland and Portugal to seek international bailouts.

Spain's regions line up for Madrid bailout: Murcia, Valencia, Catalunia

Spain's regional governments have long made it clear that they cannot make it through the year without the help of a central government bailout.  Much of the €18bn (£14.2bn) on offer will end up on Spain's eastern Mediterranean coast, with Catalonia, Valencia and Murcia at the front of the queue.

Spain’s recession deepens in second quarter

MADRID (MarketWatch) --Spain's economic recession deepened in the second quarter, final data released Tuesday showed, as gross domestic product contracted at a faster pace both on an annual and a quarterly basis amid a steep downturn in domestic spending.

BANK RUN: Flight from Spanish banks smashes record - Ambrose Evans

Data from the European Central Bank shows that outflows from Spanish commercial banks reached €74bn (£59bn) in July, twice the previous monthly record. This brings the total deposit loss over the past year to 10.9pc, replicating the pattern seen in Greece as the crisis spread.

It is unclear how much of the deposit loss is capital flight, either to German banks or other safe-haven assets such as London property. The Bank of Spain said the fall is distorted by the July effect of tax payments and by the expiry of securitised funds.

Julian Callow from Barclays Capital said the deposit loss is €65bn even when adjusted for the season: “This is highly significant. Deposit outflows are clearly picking up and the balance sheet of the Spanish banking system is contracting.”

Comments

[DailyBail]

Spain Bank Run On Pace To Wipe Out Capital In Each And Every Bank

http://blog.alexanderhiggins.com/2012/08/28/spain-bank-run-pace-wipe-capital-bank-176031/

[DailyBail]

Draghi Snubs The Bernank, Cancels Jackson Hole Trip

http://dailybail.com/home/draghi-snubs-the-bernank-cancels-jackson-hole-trip.html

[DailyBail]

Spain's regional governments have long made it clear that they cannot make it through the year without the help of a central government bailout. Much of the €18bn (£14.2bn) on offer will end up on Spain's eastern Mediterranean coast, with Catalonia, Valencia and Murcia at the front of the queue.

http://www.guardian.co.uk/world/2012/aug/29/spain-regions-central-government-bailout

[Cheyenne]

Meanwhile, back in the U.S., it's time for another round of "Which of these things is not like the other?"

A. "the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million"

B. "Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds."

C. "Romney also opposed the federal bailout for Detroit automakers, famously arguing that the industry should be forced into bankruptcy. Government bailouts, he insists, are 'the wrong way to go.'"

D. "Romney was willing to go to extremes to secure a federal bailout to serve his own interests."

http://www.rollingstone.com/politics/news/the-federal-bailout-that-saved-mitt-romney-20120829

[SKINFLINT]

Why are they just now presenting this article. They are slapping high fives and grab assin each other and with nary a whisper, this article comes into being. This article should have been put out there during the debates.

[krom]

Catalonia is NOT a "region", is a nation. A nation plundered by an artificial state. Treatment as a colony by the State, based on a Spanish fascism quietly that even greeted with raised arm, now led by the Partido "Popular", is clear for three centuries. I fear that much of world opinion totally unaware of this fact.