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Embattled Spain tries to calm fears of run on deposits at bank
Moody's downgrades four regions as reports say €1bn taken from bailed-out Bankia
The flames of the eurozone crisis leapt higher yesterday, as fears spread about the state of the Continent's most vulnerable banks.
Shares in the Spanish lender, Bankia, plummeted 30pc at one stage in trading, following a report that customers had withdrawn €1bn in deposits since the Madrid government was forced to part-nationalise the bank last week.
Bankia released a statement in the afternoon saying that the deposit fall was simply a seasonal effect rather than a bank run. This served to stabilise the share price, but the lender still ended up losing 14pc of its value.
Source and full story: Irish Independent, 18 May 2012
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Re: Embattled Spain tries to calm fears of run on deposits ...
[1] “The Madrid government was forced to part-nationalize Bankia last week.”
Translation: the Spanish government dumped the bank’s losses onto the public.
There was a time when nationalization meant public ownership. Today it means a company’s debts and speculative losses are dumped on the masses, while the company itself remains privately owned and controlled. Privatization of profits. Socialization of losses.
It would be wonderful if Bankia were destroyed, since it is the largest holder of real estate assets in Spain, at 38 billion euros. But that won’t happen. And the stupid masses don’t want it to happen, since the masses have been brainwashed to think that the collapse of a Too-Big-To-Fail bank would mean the end of the world. That is, the slaves think the collapse of their dungeon would mean their doom.
[2] “There were also rumors last night that the credit rating agency Moody's was preparing to downgrade a host of Spanish banks, a move that could push up their costs of funding.”
Translation: The Spanish masses must prepare for even more austerity. Ratings agencies such as Fitch and Moodys collaborate with the big financial institutions. By downgrading selected bonds, they give governments an excuse to impose austerity – that is, slash social programs, privatize everything, and increase funding for bankers and the military.
[3] “The dominant fear is that a Greek exit from the eurozone will prompt a series of runs on weaker banks across Europe, stretching the resources of governments beyond breaking point and forcing nations such as Spain and Italy to seek official assistance from the eurozone and the IMF."
A Greek exit would be fabulous. It would be the best thing for Europe. It would defy the tyranny of the euro currency. Ultinately, though, it still won’t mean much as long as nations continue to have PRIVATE CONTROL OF THE CURRENCY AND THE CENTRAL BANKS.
[4] “The Spanish banking sector is a particular source of alarm. Analysts estimate the nation's lenders could be sitting on unrecognized bad property loans of up to €100bn.”
Translation: there is a slim chance that the big banks might have to be honest in their accounting. They might have to admit that no one in Spain pays on his mortgage, since no one can afford to. They might have to concede that the loans are already in default. They might start to see their lies unravel. Oh the horror!
[5] “Madrid has been encouraged to seek support now for its banking sector from the European bailout fund, the European Financial Stability Facility.”
Translation: Spain must submit even further to total and absolute rule from Brussels the (EC) and Frankfurt (the ECB).
[6] “Senior European politicians have warned that, unless the next Greek government submits to further austerity and economic reforms, Athens's bailout funds will be cut off. This would prompt a default by Greece on its debt and an exit from the single currency.”
Wouldn’t that be wonderful? But the bankers won’t allow it, nor will Greek politicians on the bankers’ payroll. That little twit Alexis Tsipras, leader of Syriza and the “radical left” -- he loves the euro currency. He whines about austerity, but he says the Greek masses must continue to submit to it by continuing to use the euro. That is, Alexis Tsipras is doing the politician's game of seeming like a populist, while championing the elitists. The worthless little bastard just wants to get on the bankers’ payroll, alongside the other Greek politicians.
If Greece ever did dump the euro, then the web of tyranny might unravel. The Depression might end. This is intolerable. I don’t think it will happen. I’ll believe it when I see it. Until then, everything is bullshit designed to praise the criminal bankers.
Fortunately for the bankers, the Greek masses [like the Irish masses] have been programmed to think that dumping the euro would be as horrendous as…well…as a PUBLIC CENTRAL BANK!
[7] “The euro also slipped to its lowest level against the Japanese Yen since February. The single currency is at its weakest level against sterling in three-and-a-half years.”
So what? This means nothing. It’s a product of the irrational vagaries of currency traders. Is this supposed to make us think we will be doomed without banker tyranny?