We all know banks are in trouble. With financing getting very tight, those assets must be sold. Banks are holding assets, they can’t really support. Expect more financial engineering as those crap assets must be “handed” over. Must read on the assets sales failure by IFR;
European banks are being forced to abandon their efforts to sell off trillions of euros worth of loans, mortgages and real estate after a series of talks with potential investors broke down, leaving many already struggling firms with piles of assets they can barely support.
Lenders have instead turned their attention to reducing the burden of carrying such assets over months and years, with many looking at popular pre-crisis “capital alchemy” arrangements to minimise capital requirements and boost their ability to use the assets to tap central banks for cash.
What is happening in Spain? Why haven’t we heard nothing from the new PM Rajoy regarding the economy? We have covered the Spanish economy extensively over the last months. Although Spain doesn’t look as bad as Italy on paper, SPain has other problems, which shouldn’t be neglected. The huge unemployment, the lost youth generation (unemployment reaching 50%) and the collapsed property sector, will haunt Spain for many years. The new PM has inherited an Economic Mess, and therefore we ask ourselves; Is Mr Rajoy already planning to ask for aid?. Reuters reports;
Spain’s new centre-right government, due to be officially sworn in mid-December, is considering applying for international aid as one of its options to shore up its finances, sources close to the party say.