Spanish rates

LTRO’s and bank liquidity not withstanding, Spanish rates reversed and began moving higher immediately after they thumbed their noses at the markets and announced they had decided not to take additional austerity measures to meet their immediate deficit targets.

Not being the issuer of the euro, like all the euro member nations, they are fully exposed to a Greek like liquidity crisis, as they can not spend without prior funding, much like the US states.

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3 Responses to Spanish rates

  1. Jacob Goense says:

    You should have seen their rates when they were still the peseta issuer.

    Reply

    WARREN MOSLER Reply:

    yes, much higher, and never a funding issue

    Reply

  2. Unforgiven says:

    Fund domestically with PassEuro tax credits.

    Also, Pesetas are coming out of the woodwork in some towns:

    http://www.time.com/time/world/article/0,8599,2057949,00.html

    Reply

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