Spanish Bailout is Inevitable

Spain inches towards a full EU bailout | Reuters.

There is a passage in this article that states that the Spaniards only need about €36bn in debt financing for the rest of the year. This number comes from the Spanish government itself, so I do not understand why it is parroted by the MSM rather than critically analyzed.

The real number is actually much higher, but this information is being suppressed. Let’s look at what we know. Even though tax receipts are lower and the Spanish regions need more money than was originally budgeted for transfer payments, deficit figures have not been adjusted. Furthermore, if Spain really only needs €36bn for the rest of the year, then why does it need a bailout?

There are two possibilities. Either they need a hell of a lot more money to finance themselves for the rest of the year, or they really only need the €36bn and they have lost access to the bond markets. Either option will be unpalatable for markets.




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