You seem to have overlooked that I'd already posted the headline and link on the original LBN OP before you posted here. Check if you don't believe me.

Can't find your OP to have a look at. Regardless, I copied and pasted mine from the BBC website. It was breaking news and changed several times in the first few minutes, when I went back to look for my headline, it had changed completely to what I updated it with.

What is your problem exactly?

... Germany’s finance minister, Wolfgang Schäuble, praised the reforms undertaken thus far by Spain, calling the teleconference “constructive” and saying in a statement that “Spain is on the right path and Germany, just like the other countries and institutions of the euro zone, as well as probably the I.M.F., will support Spain on that way.”

The money will be channeled through the Spanish bank-bailout fund but the Spanish government will ultimately be responsible and will have to sign the memorandum of understanding and the conditions that come with it.

Mr. de Guindos said that the terms of the emergency loan would be “very favorable” but only set in coming days. He noted that “not all the financial institutions need capital,” adding that “the problem that we face affects about 30 percent of the Spanish banking system.”

Robert Tornabell, banking professor at the Esade business school in Barcelona, said that despite the government’s insistence to the contrary “what has just been agreed is in fact a bailout, just like what had to be done for Ireland because of its banking problems.”

Spain’s rescue request would “clearly hurt” the credibility of the government of Mr. Rajoy, as well as that of the Bank of Spain, following their repeated claims that Spain would not require European emergency funding in order to keep its banking sector afloat. Still, Mr. Tornabell said, “this is good news for our banking system, as is the fact that the euro group is not imposing such strict conditions and seems willing to offer Spain an interest rate well below that of the market.”...

/... http://www.nytimes.com/2012/06/10/business/global/spain-moves-closer-to-bailout-of-banks.html?pagewanted=2&_r=1#h[]

When I was a child my grandfather used to tell me: ''boy, you can't make a silk purse from a sow's ear.''

- Little did I know he was clairvoyant and was talking about the Euro. Of course, this might otherwise be funny if this weren't so sad and predictable. The house of cards is falling down and will make a HUGE MESS of everything, and no amount of ''loans'' nor ''austerity measures'' can ever prop it back up again.

Fiat, fiat, fiat.....

K&R

[font size=4]ZEROHEDGE[/font]

[font size=3]Spain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout[/font]


Submitted by Tyler Durden on 06/09/2012 14:52 -0400

After two years of denials, we finally have the right answer: Spain IS Greece. Only much bigger (it is also the US, although while the US TARP was $700 billion or 5% of then GDP, the just announced Spanish tarp is 10% of Spanish GDP, so technically Spain is 2x the US). So now that the European bailout has moved from Greece, Ireland and Portugal on to the big one, Spain, here are the key outstanding questions.

1. Where will the money come from?

De Guindos, Schauble and the Eurogroup, all announced that the sole source of cash would be the ESM and/or the EFSF. The problem with this is that the ESM has yet to be ratified by Germany, whose parliament said previously it is sternly against allowing the ESM to fund a direct bank bailout, something which just happened. Thus, the successful German ESM ratification vote, whenever it comes, and which previously was taken for granted, now appears to be far more questionable. Which leaves the EFSF. The problem with the EFSF is that there is about €200 billion in dry powder. And this includes the Spanish quota of €93 billion, which we can only assume is now officially scrapped.

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Which brings us to a bigger question: now that Spain is officially to be bailed out, what happens next. And by that we mean of course the big one: Italy. Recall that as we posted in Brussels... We Have A Problem, once the contagion spreads again to Italy, and that country also needs a bailout, it is game over. From the world's biggest hedge fund Bridgewater:

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In other words, it is very likely that the funding for the Spanish bailout will have yet to be procured. Who will provide cash which is virtually certain to disappear forever in the Spanish real-estate market mismarking vortex?

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