Spanish tweets say do what Iceland did ! Naturally their corrupt pols will do the opposite and will bailout the banks , which is a fruitless waste of euros

Tuesday, May 08, 2012 1:11 AM

Top Tweet in Spain "Do as Iceland Did"

In response to Spain to Spend €7bn-€10bn (It Doesn't Have), Bailing Out Bankia, the Nation's 3rd Largest Bank reader "Bran" who lives in Spain has an interesting set of comments:

 Hello Mish

"#hagamoscomoislandia" became a hot trending topic in Spain on twitter.

The Tweet means 'Do as Iceland Did'.

I see comments calling for demonstrations 12th May for 'real democracy'.

Some offer bets that the first bank in flames will be Bankia.

Others point out that the budget for health and education this year is 5 billion euros, but the "bailout" of Bankia may be double that.

All the best, Bran.

Twitter Search 

A Twitter search for "#hagamoscomoislandia" turns up a hit with titles in English but comments in Spanish.

Google Translation says the page is already in English. However, I cut some of the comments and translated them. Here are the results.

• Not one euro for banks, prosecute the perpetrators of the crisis and a constitution written by the citizens!
• Education + health budget in 2012: 5,397 million euros. Rescue Bankia: 7,000 million euros
• Greece, under the control of the Troika, in bankruptcy. Iceland, after a revolution, Out of Crisis.
• 7,000 million euros for Bankia? To begin, No. # # HagamosComoIslandia RescatemosPersonas
• Trial of bankers and politicians, reappropriation of wealth plundered, new constitution and social justice

and....

http://globaleconomicanalysis.blogspot.com/2012/05/spain-to-spend-7bn-10bn-it-doesnt-have.html

Spain to Spend €7bn-€10bn (It Doesn't Have), Bailing Out Bankia, the Nation's 3rd Largest Bank; Liar, Liar Pants on Fire

After insisting no bailouts would be needed, Spain to spend billions on bank rescue 

 Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender.

In an abrupt reversal of policy, the Spanish government, which had previously insisted that no additional state money would be needed to clean up the country’s banking sector, confirmed that an intervention was being prepared.

Some bankers and analysts have argued that BFA, Bankia’s parent company which controls the listed entity and houses the combined group’s worst quality assets, needs significantly more capital.

BFA said last week it had renegotiated €9.9bn of assets last year to avoid them being classified as bad loans, equivalent to 5 per cent of the bank’s €188bn loan book.

One adviser to Spanish banks and government agencies said that if the amount Madrid injected into Bankia was not sufficient, and did not involve a much improved management of its bad assets, then the plan risked achieving little.

“Just injecting capital would be the equivalent of rearranging the deck chairs on the Titanic,” the person said. “I think Spain has not admitted to itself just how weak some of its banks actually are and how serious the situation is.”

Liar, Liar Pants on Fire

• No one in their right mind believed Bankia did not need a bailout.
• No one in their right mind now believes Bankia only needs €7bn-€10bn now
• No one in their right mind believes the Spanish banking system is solvent

The only way Spain will not need a bailout is if it tells the Troika to go to hell, defaults on foreign-held bond, then exits the eurozone. Moreover, that is exactly what Spain should do, right now.

Spain will eventually exit the eurozone anyway, so the sooner the better. Sadly, the Spanish government is highly likely to rape its citizens with higher VAT taxes and bank bailouts in foolish attempts to prevent the inevitable, just as Greece has done.Wasting €7bn-€10bn of taxpayer money, followed by double or triple that when the bailout proves to be insufficient is just plain stupid. Unfortunately, stupidity is rampant.