With Valencia bust, Spanish bonds at all-time record spreads to bunds, and yields at euro-era record highs, Spain’s access to public markets for more debt is as good as closed. What is most concerning however, as FAZ reports, is that “the money will last [only] until September”, and “Spain has no ‘Plan B”. Yesterday’s market meltdown – especially at the front-end of the Spanish curve – is now being dubbed ‘Black Friday’ and the desperation is clear among the Spanish elite. Jose Manuel Garcia-Margallo (JMGM) attacked the ECB for their inaction in the SMP (bond-buying program) as they do “nothing to stop the fire of the [Spanish] government debt” and when asked how he saw the future of the European Union, he replied that it could “not go on much longer.”
Yeah, yeah. A commenter to this article put it best:
Indeed. I’ve been hearing predictions of the imminent doom of the Euro/Eurozone/ECB/Whatever for going on two years now, but the great bleeding hulk just keeps right on shambling along.
Which is why I no longer pay a lot of attention to the coverage of the situation, since there’s no point in getting all worked up unless and until somebody actually exits the Euro/Eurozone.
Of course, most of my preps are completed. Your mileage may vary.