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View Full Version : Money flies out of Spain (run on the banks)



Trinnity
05-31-2012, 12:56 PM
Money flies out of Spain, regions pressured (http://www.reuters.com/article/2012/05/31/us-spain-economy-idUSBRE84U08N20120531)

(http://www.reuters.com/article/2012/05/31/us-spain-economy-idUSBRE84U08N20120531)(Reuters) - Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.


Spain is the next country in the firing line of the euro zone's debt crisis, with spendthrift regions and shaky banks threatening to blow a hole in state finances and pushing funding costs towards levels that signal the need for a bailout.
The European Commission gave new help on Wednesday, offering direct aid from a euro zone (http://www.reuters.com/subjects/euro-zone) rescue fund to recapitalize Spanish banks and more time for Madrid to reduce its budget deficit.

This is what overspending by govt leads to. We're gonna go down the toilet too if we don't get our leaders on a short leash.

Waiting for the inevitable is just not good enough. We can prevent it if we demand govt get its priorities in order and stop wasting money and giving it away.

Cigar
05-31-2012, 01:06 PM
Good thing the Size of Government actually went down under the Obama Administration.

Smartmouthwoman
05-31-2012, 01:24 PM
This is what overspending by govt leads to. We're gonna go down the toilet too if we don't get our leaders on a short leash.

Waiting for the inevitable is just not good enough. We can prevent it if we demand govt get its priorities in order and stop wasting money and giving it away.

Didn't we just run across a poster from Spain who was bragging about how good things are there?

Just goes to show ya... the left isn't just delirious about Barack Obama... they've buried their heads in the sand over intl events as well.

Conley
05-31-2012, 01:24 PM
A run on the banks is the last thing Spain needs...that could lead to a banking system collapse that would make things even worse. Scary stuff...not like It's a Wonderful Life.

MMC
05-31-2012, 01:31 PM
Yeah Pete is all on top of the EU Blastzone.....one could see this coming with all the riots. There are so many people out of Work there. Thats not recession they heading into thats total collapse.

Conley
05-31-2012, 01:34 PM
Oh yeah, the unemployment numbers over there are downright scary.

Cigar
05-31-2012, 01:36 PM
Didn't we just run across a poster from Spain who was bragging about how good things are there?

Just goes to show ya... the left isn't just delirious about Barack Obama... they've buried their heads in the sand over intl events as well.

Yea ... he was on Vacation

I was in Mexico and for a few days and even I know the difference.

Trinnity
05-31-2012, 03:59 PM
A run on the banks is the last thing Spain needs...that could lead to a banking system collapse that would make things even worse. Scary stuff...not like It's a Wonderful Life.But remember, the article also says this in the third paragraph quoted:


The European Commission gave new help on Wednesday, offering direct aid from a euro zone (http://www.reuters.com/subjects/euro-zone) rescue fund to recapitalize Spanish banks and more time for Madrid to reduce its budget deficit. But the smart money is getting out and the next step could easily be panic mode.

URF8
05-31-2012, 04:03 PM
Good thing the Size of Government actually went down under the Obama Administration.

Do you have a link to that? Thanks.

Trinnity
05-31-2012, 04:07 PM
Do you have a link to that? Thanks.Even if he does, this admin uses accounting tricks and gimmicks to make the numbers look good.
It's a waste of time, imo, to ask for a source.

Conley
05-31-2012, 04:15 PM
Even if he does, this admin uses accounting tricks to make the numbers look good.
It's a waste of time, imo, to ask for a source.

Careful talking smack about Admin...you only just became a mod :wink:

Trinnity
05-31-2012, 04:16 PM
Careful talking smack about Admin...you only just became a mod :wink:LOL
<runs and hides>

Viv
05-31-2012, 05:49 PM
This is what overspending by govt leads to. We're gonna go down the toilet too if we don't get our leaders on a short leash.

Waiting for the inevitable is just not good enough. We can prevent it if we demand govt get its priorities in order and stop wasting money and giving it away.

Or you could have got your previous leaders on a short leash and avoided causing the crash which is crippling Spain.

Conley
05-31-2012, 05:58 PM
U.S. leaders are responsible for the crippling of Spain?

MMC
05-31-2012, 08:34 PM
U.S. leaders are responsible for the crippling of Spain?

Right....like Spain and their Spending and never paying of their debts didn't have anything to do with it.

wingrider
06-01-2012, 02:33 AM
smart money in the USA are also saying WTF and moving there reserves off shore. what does that tell ya.?

Cigar
06-01-2012, 09:29 AM
smart money in the USA are also saying WTF and moving there reserves off shore. what does that tell ya.?


You do know that Off-Shoring didn't start 48 months ago ... ?

wingrider
06-01-2012, 09:34 AM
true but it is becoming more prevelant..you think they may know something the reat of us don't know?

Cigar
06-01-2012, 10:53 AM
true but it is becoming more prevelant..you think they may know something the reat of us don't know?

... yea ... the only thing better than Tax-Free is Free. :)

wingrider
06-01-2012, 07:49 PM
... yea ... the only thing better than Tax-Free is Free. :)

great choice of words,, Free.. yeah I wish we were still free, but I think we can kiss that concept goodbye.

Trinnity
06-01-2012, 10:41 PM
Or you could have got your previous leaders on a short leash and avoided causing the crash which is crippling Spain.Viv, you and Awryly should get together for coffee.

Goldie Locks
06-01-2012, 10:43 PM
Viv, you and Awryly should get together for coffee.

I think they have.

Viv
06-02-2012, 08:53 AM
Right....like Spain and their Spending and never paying of their debts didn't have anything to do with it.

Had the economic crash not occurred, would Spain be in this kind of trouble now?

They had their issues as we all did, but the crash is what crushed economies worldwide. I am not really alone in mistrusting the US. You'll recall the credit rating issues. I also read somewhere this week that US is in a worse state than Spain, but someone called Geitner has by slight of hand covered that reality up...so far..

Shoot the Goose
06-02-2012, 09:12 AM
Had the economic crash not occurred, would Spain be in this kind of trouble now?

They had their issues as we all did, but the crash is what crushed economies worldwide. I am not really alone in mistrusting the US. You'll recall the credit rating issues. I also read somewhere this week that US is in a worse state than Spain, but someone called Geitner has by slight of hand covered that reality up...so far..

Spain was destined to come tumbling down sooner or later, just as Greece has. Why is it so difficult to understand that the bigger a house of cards a country's economy and finances are, the more vulnerable they are to an ill-breeze ?

Spain, like Greece, had more issues. Like Italy and Portugal and Ireland had more issues than such as Germany, France, and England.

That socialist nanny-state gubmit-teat shit just don't work.

Peter1469
06-02-2012, 06:14 PM
Shoot is correct; the only thing that the 2008 crash did was show where the weakness existed. Even bad systems can operate in good times.

wingrider
06-02-2012, 06:19 PM
Spain was destined to come tumbling down sooner or later, just as Greece has. Why is it so difficult to understand that the bigger a house of cards a country's economy and finances are, the more vulnerable they are to an ill-breeze ?

Spain, like Greece, had more issues. Like Italy and Portugal and Ireland had more issues than such as Germany, France, and England.

That socialist nanny-state gubmit-teat shit just don't work.
just don't go to ny and try and supersize you soft drink..


this is beginning to look a lot like 1929 all over again,, those that do not learn from history are doomed to repeat it

Chris
06-02-2012, 06:23 PM
Interview on Professor Hoppe’s new book: Der Wettbewerb der Gauner (“The Competition of Crooks”) (http://thegodthatfailed.org/2012/05/31/professor-hoppes-new-book-der-wettbewerb-der-gauner-the-competition-of-crooks/)
First of all, Mr. Hoppe, thank you for taking the time to give us this interview. You have written in your new book, Der Wettbewerb der Gauner (“The Competition of Crooks”), that “We don’t need a European super state, which the European Union is seeking to establish … but rather a Europe and world consisting of hundreds or even thousands of tiny Liechtensteins and Singapores.” Such a trend is not apparent at the moment, rather the opposite. Do things first have to get even worse – politically and economically – , before they get better again?

Unfortunately, I’m afraid so. Before that we’ll probably have to experience national bankruptcy spreading through Portugal, Spain, Italy and ultimately on to Germany. Only then, I fear, will it become clear to everyone what many people already suspect now: that the EU is nothing but a gigantic machinery of income and wealth redistribution, from Germany and the Netherlands to Greece, Spain, Portugal, and so on. But that’s not all. It will also become clear that the same insanity, the same mess, exists even within each individual country: redistribution from Bavaria and Baden-Württemberg to Bremen and Berlin, from Little Town A to Little Village B, from one company or industry to another, from Smith to Jones and so on – and always following the same perverse pattern: redistribution from the more productive countries, regions, places, companies and individuals to those that are less productive or not productive at all. Bankruptcy will bring all of this to light in a dramatic fashion.

And perhaps then, finally, will come the realization that democracy – in whose name all these dirty tricks have been done – is nothing more than an especially insidious form of communism, and that the politicians who have wrought this immoral and economic madness and who have thereby enriched themselves personally (never, of course, being liable for the damages they have caused!), are nothing more than a despicable bunch of communist crooks.

Shoot the Goose
06-02-2012, 06:33 PM
Interview on Professor Hoppe’s new book: Der Wettbewerb der Gauner (“The Competition of Crooks”) (http://thegodthatfailed.org/2012/05/31/professor-hoppes-new-book-der-wettbewerb-der-gauner-the-competition-of-crooks/)

What Hoppe is saying is just a repetition of what was said long ago, as being the inherent weakness of a Democracy. I will paraphrase:

"The inherent weakness of a Democracy is that once the majority realizes in can vote itself the largesse of the Treasury, it will fail".

The original basis has been credited to such as DeTocqueville, Ben Franklin, and a bunch of others. I submit that had the Founders added 3-4 more sentences to key sections of the Constitution, they could have walled off this weakness in our Republic.

As it is, the Liberal parasites have been able to exploit this weakness, such that we are now a country of incredible debt, and a cancerous liberal moocher class. A double-pox on our house.

wingrider
06-02-2012, 06:45 PM
to the last two posters.. I cannot agree more,, right on fellas

Goldie Locks
06-02-2012, 10:16 PM
Good thing the Size of Government actually went down under the Obama Administration.

Dependence has grown 23% under Ubama.
The federal government has indeed grown during Obama's tenure. Spending as a share of the economy has gone up. The number of federal employees has risen. More Americans are relying on federal assistance.

Get a life outside Ubama and stop drinking the freaking kool-aid

Trinnity
06-02-2012, 10:51 PM
Germany should leave the EU to save itself.

Peter1469
06-03-2012, 02:56 AM
Germany is in a pickle. On the one hand it needs the EZ: it uses the free market to sell its high end manufactured goods. On the other hand, the German people resent working to 67 while paying for Greeks (and others) to retire at 50.

Goldie Locks
06-03-2012, 12:10 PM
Domino effect coming, everyone better prepare.

http://www.theblaze.com/wp-content/uploads/2012/06/slide-221.png

Goldie Locks
06-03-2012, 12:14 PM
As defaults in governments and banks begin to happen we could have closure of the stock markets and the entire banking system...Argentina 2001, Russia 1998, Brazil in 1991...just look to history if you want to know the future.

RollingWave
06-05-2012, 10:42 PM
The irony of course, is that those money are mostly flooding into the US and Japan, not exactly two shiny example of government austerity/reponsibility either. meanwhile, country that actually is relatively responsible are actually seeing their stocks go down... LOGIC!

FWIW, I don't think money fleeing spain has nearly as much to do with their government debt as the fact that you know... they have like 20-30% unemployement. doesn't take an economist to see that's not going to go down well in even the short run.

Peter1469
06-06-2012, 04:16 PM
Money fleeing Spain, or any other country, is a sign that the people know a collapse is coming. If enough money leaves, the banks go belly up because banks only have a fraction of the cash needed to cover their deposits.

Many EU nations and Switzerland are passing laws (quietly) that will prevent currency flight, or is the Swiss case, prevent foreign capital from coming into Swiss banks (this drives up the value of the Swiss currency, which is already really high.)

Peter1469
06-06-2012, 04:17 PM
The average leveraging of European banks is 26:1 (official number, the real number is likely much higher). That is Lehman Bros levels.

RollingWave
06-06-2012, 09:31 PM
Money fleeing Spain, or any other country, is a sign that the people know a collapse is coming. If enough money leaves, the banks go belly up because banks only have a fraction of the cash needed to cover their deposits.

Many EU nations and Switzerland are passing laws (quietly) that will prevent currency flight, or is the Swiss case, prevent foreign capital from coming into Swiss banks (this drives up the value of the Swiss currency, which is already really high.)

wait I had read that the Swiss were actually trying to drive DOWN their currency because they still do export a good amount of stuff. and in theory if foreign currency can't come in it means demand goes down which should mean currency go down too. (since if a lot of folks buy your currency it goes up, if a lot of foks that want to buy you currency but can't then it should be lower than where it was going to be at least.)

Peter1469
06-06-2012, 09:40 PM
wait I had read that the Swiss were actually trying to drive DOWN their currency because they still do export a good amount of stuff. and in theory if foreign currency can't come in it means demand goes down which should mean currency go down too. (since if a lot of folks buy your currency it goes up, if a lot of foks that want to buy you currency but can't then it should be lower than where it was going to be at least.)

Right. But if a lot of foreign current goes into Swiss banks the value of their money goes up. That is why they have set up laws to prevent this.