Spain set to spend billions on bank rescue.

I have to say, I have heard of people doing this before, in similar circumstances. It didn’t end well. I’ll try to link to a story of a similar thing I heard about. Can’t remember when it was….2008…2007? The scale of the bailout and the urgency with which it is required remind me of something else. A phone call comes to mind, Alistair Darling took it. Dear Spain, ask him about it before handing over your money…

Billions of Euros are to be injected into the Spanish bank, Bankia. I think here is I am to artfully and sensitively, juxtapose this with the pensioners, the people going hungry, and the widespread riots, and Europe wide ‘austerity’ backlash. We need to stop using the word ‘austerity’ it is a crap word.

Transfer of people’s assets to banks and increase in personal debt, transfer of bank debt to governments, sovereign debt crisis resulting from government inability to hold this debt, deleveraging onto population increasing the debt they hold, demanding their publicly owned assets are sold and fractured to make up for the bank debt, asset purchases usually facilitated with bank finance, so the bank own the assets, while the deficit people live at is increased and they either increase their debt, or their assets return to er… to deal with er…bank debt. Seeing a pattern, it can apparently be carried on till absurd lengths with no one pointing out how ridiculous it is.

Bankia, last year held a celebration for newly listed shares in the Madrid stock exchange. When the screen was switched on following a celebratory speech, the share price immediately began to fall and everyone seems to have pretended it didn’t happen. It’s restructuring, like the unlimited liquidity myths, and the various other global financial ‘miracles’ that brought us here, turned out to be a fucking disaster which has already cost the Spanish people dearly.

A subsidiary of Bankia, Banco de Valencia, was taken over by the Bank of Spain to avoid collapse, this on top of a serious property bubble and a serious amount of bad debts in there with a weird overlap between estate agents and banks. Which must have been handy, in terms of making sure property prices increased with the level of er…debt that comes with it. An injection of cash straight in here seems like a sensible thing to do, no?

Basic free market economic principles from a layman; you can’t prevent free market adjustments on that scale, without recognition they are probably necessary adjustments, and making efforts to address the problem that necessitates the adjustment. Or you just fuck up everything. Doing the same thing over and over, expecting different results, wasn’t that the definition of stupid according to Einstein? Saying that, you ever get the feeling the results are expected and the only person who is supposed to be surprised are those paying?

 

 

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