Once the European debt crisis is resolved- one way or another- the focus will shift to the Western side of the pond.
California, Illinois, Michigan, and 45 other states are in just as bad of shape as Greece/Spain/Italy….and deteriorating just as rapidly, but the MSM MOPE machine dare not mention this fact.
As Jim Sinclair would say: QE will go to Infinity both here, and there.

NEW YORK (CNNMoney) — Spain’s Treasury minister appealed to European leaders for financial support Tuesday, saying the country’s credit markets are seizing up.

The yield on Spain’s 10-year bond has been flirting dangerously close to the 7% mark that smacks of default anxiety. Over the past week, the 10-year yield has been at its highest level since November.

Treasury Minister Cristobal Montoro told Spanish radio station Onda Cero that it is “technically impossible” for Spain to bail itself out. He said that Spain needs to get more money to improve its debt situation to open the bond markets back up so people can invest in the country.

“The risk premium says Spain doesn’t have the market door open,” said Montoro. “The risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt.”

Economists estimate that the Spanish government has about €800 billion in outstanding debt.

Meanwhile, the European Stability Mechanism, a bailout fund that comes into effect this summer, will be equipped with only €500 billion.

Spain, the new epicenter of Europe’s woes

Montoro said that Spain wants “to continue being part of the [eurozone] and must bet on the European institutions” to financially support the fiscally troubled Iberian nation.

The extent of Spain’s fiscal troubles were unveiled in May, when the government announced a €19 billion rescue of Bankia, one of Spain’s top lenders.
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  1. I don’t understand it, why would Spain take on more debt as that’s what their doing. Hell I would default and leave the Euro. They have nothing to lose. Then again maybe they think the Euro is going to get stronger when Obama sneaks them some more useless paper. LMAO

  2. The Spanish banking system is bust….German banks take a Moody’s downgrade….so seems like more ‘delay ‘n pray’ for the eurozone….Good thing Bernanke speaks tomorrow….and he is on their side….

  3. As the ECB, ESFS, IMF and the usual suspects bailed out the banksters who loaned to Greece, forcing some haircuts of the  former $250 billion in debt, the Greeks ended up with $400 billion in new debt after the haircuts were in place.  How did that happen?  Ask  David Copperfield, Houdini and Angela Merkel.  It is one of the most amazing feats of fiscal debt servitude visited upon a people since the last country that was bankrupted by the financial leeches. 

    After all the money traded hands, the Greek power firms can’t pay for gas, the pharmcies can’t pay for drugs and the manufacturers can’t pay their employees. Greeks are immeasurably worse off in the last 4 months since this total BS of a bail out.  But just wait until the banksters get hold of Spain.  The total national debt is around 225% of GDP or approximately $2,200,000 trillion Euros.

    If these ghouls can scare up the money to bailout Spain after they worked over Greece,  Greece will still  end up infinitely worse than it is now and it is in terrible shape today.  Spain looks at Greece and sees themselves in at little as 2-3 months, maybe less.  Greece is in a terror zone of desperation and bankruptcy.  Spain is in a zone of great fear with its citizens seeing an incipient disaster of financial failure and a complete credit lock down. Spainards are drawing their life savings from their banks at $1 billion a day or more, hoping to find some shelter from this storm. 

     Greece was bailed out to save the bankers and they got saved, only to leave the Greeks in complete penury with not one single safe haven in the country except to exit and seek greener pastures. The world is not large enough to contain Spain and Italy will follow within maybe 4-6 months if they are lucky.  2,400 tons of gold is a very tempting target so they will be raped of their gold soon enough.

      Spain’s collapse will be far, far greater simply because there is not enough money in the world,   despite the banksters hysterical scramble  to find it and throw it down the rat hole in the hopes of saving their wretched asses. The banksters  entire lives; their financial paradigm is doomed to failure and a crushing end as they drag Spain into a horrible hole. They will sacrifice anyone with a penny they can steal.   We are part of that money pot.  These horrors are desperate to save the Euro and their power, as ephemeral as it is.  

    China and Russia are also seeing bank runs, not reported in any media of note as these two countries have been feeling the effects of global slowdowns and depressions and can’t afford to let the world know they are in real trouble.  If that news was known, their power over world events would be minimalized to nearly nothing.

      Their economies are much more suceptible to slowing economies; China due its reliance on overseas sales of their junk plus tens of millions of empty homes and buildings and $3 trillion in rapidly depreciating reserves that can’t be unloaded without a huge haircut;   Russia, due to its total reliance  on natural resources whose prices are being depressed while Russia’s demograhics are racing into an extinction level event of birth dearth and a lack of youthful vigor to rebuild this important world player. 

     They are both pretty hopeless in the interim and they will do nothing to help Europe even as it is their largest client base. But they suck up the phyzz at light speed and that may help buffer their crumpling economic empires.  IMO

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