Open the bloomberg's electronic trading and order transfer directory, Spain nearly ten different term of the government bond yields have JiShuaShua to soaring up. Intuition tells us it could be a disaster, because the yield on the 10-year Treasury already approaching 6.5% of the debt ceiling ", in other words, the Spanish government if it is to continue financing, may have big trouble.
 
Don't forget, the last time is Greece.
 
Spain-Germany carry innovation high
 
From March 1, low jacked up 4.87% after two months yesterday (on May 29) Spanish 10-year yield was 6.5% in pan breakthrough psychologically. Bloomberg data shows, the Spanish 10-year Treasury yield yesterday closing times 6.46%, this position is only last November 25, the highest level in history low 3.6%. And on the same day that Germany and compared the 10-year Treasury yield, the two countries national debt interest spread is a record-512 basis points.
 
Spain really will thoroughly crash?
 
We first see a group of Phoenix Capital Research chief market strategist Graham Summers summary of the astonishing data: first of all, the Spanish total bank lending is the country's 170% of GDP, a Spanish bank loan problems to 18 years high; Second, the years of Spanish bank debt 20% need an extension; Finally, the Spanish private sector debt was three times as much as the country's GDP.
 
To this, the Spanish prime minister, Mali jarno · pulling the Iraq was in a yesterday unless prior arrangements of the news conference said matter-of-factly, "we won't let any area government and bank fell, and the Spanish don't need aid."
 
"Although the Spanish government efforts to make investors feel stable, but in this case the degree of efforts clearly enough." The French Paris bank in London's chief eurozone economist KenWattret said, the Spanish government is verge, market participants to change views still has a long way to go.
 
Spain or step behind Greece
 
Perhaps as market participants expected, the Spanish banking collapse of the day, it is the country's file for bankruptcy.
 
Spanish data show that the central bank, the bank of Spain in the real estate industry risk exposure for 338 billion euros, of whom 52.1% are problem loans. According to the daily economic news reporter understanding, if Spain want to save the banking industry, you have to issue new national debt, but, at such high debt issuing new debt issued to the cost, is to accelerate economic suicide.
 
Graham Summers had described the debt says, let a bankrupt country save other bankrupt country is out of the ballpark. Similarly, let on the verge of bankruptcy of Spanish save in bankruptcy proceedings banking, also like one thousand all night.
 
Reporters noticed, although Friday the Spanish government decided to the country's second largest bank debt issuing capital injection Bankia 19 billion euros, but on Monday Bankia share price or from Friday closing price of 1.5 euro dropped to 1.11 euros a lower price, and on May 9, Bankia nationalization of Spain announced after the bank deposit within one week of the bank deposit for a total loss amount of 1%.
 
Aid Bankia can only let Spain to outside world faster for financial aid. "Spain not to save the whole strength banking system." The Dutch international bank credit analysts cooperation to accumulate funds Olly
Burrows, despite the current need immediate relief is the object of financial institutions and non-governmental, but officials could not lend money out of the bank have nothing at all.
 
Spain the world journal pointed out, Spain is there may be a need for a like Greece that big cleaning, is expected to clean up the bank balance sheets will cost 10 billion euros ($), improving the core capital adequacy ratio and spending an extra 20 billion euros.




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