Hope Springs Eternal & Boosts Global Stocks
Biderman on the markets.
Spain’s Prime Minister Mariano Rajoy said he is willing to consider asking for a bailout and the markets respond by buying two year Spanish debt and European stocks. Reality is that Rajoy’s statement means nothing because Spain is already de facto bankrupt. Bankrupt means that that Spanish banks, provinces and the government not repay debts. Tax collections are lower than government spending. Rajoy knows help really means that Germany would control Spain’s purse strings. Is that likely to happen? Spain will leave the Euro before that happens. More over if Spain accepts German help, would that happen anytime soon? No way that happens in less than a year. By which time Spain’s economy is in the same condition as the Midwest cornfields. (full reading here and video below.)