Bailout in Spain Leaves Taxpayers Holding the Bag

Posted by Kendall Harmon

After clinching Spain’s €100 billion bank bailout, Prime Minister Mariano Rajoy flew to Poland on Sunday for the Spanish team’s soccer match, declaring “this matter is now resolved.”

Not so fast, prime minister.

On Tuesday, Spain’s long-term borrowing costs soared to their highest level since the country joined the euro zone. Investors have apparently concluded that the rescue is potentially a much better deal for the banks and their shareholders than for the government, its taxpayers and bondholders.

Read it all.

Filed under: * Economics, PoliticsEconomyTaxesThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--Politics in General* International News & CommentaryEurope--European Sovereign Debt Crisis of 2010Spain* TheologyEthics / Moral Theology

Posted June 13, 2012 at 6:15 am [Printer Friendly] [Print w/ comments]

1. Pageantmaster ن wrote:

In a darkly hilarious rant in the European Parliament Nigel Farage has managed to sum up the complete absurdity of Italy borrowing at 7% to lend to Spain at 3%

June 13, 9:02 pm | [comment link]
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