With ESM ratification months away (if ever) and something resembling "funding" even more months away I doubt Spain will tap it - their banks won't last that long. Since the market perceives the ESM as being the "big bazooka" of course the technocrats want to drop the word "ESM" in as many conversations as possible. The reality is EFSF, and it is busted now.

http://www.bloomberg.com/news/2012-06-11....

Partial quotes:

Quote:

“The unhealthy banks [in Spain] should be brought down or some banks should be possible to chop up” so that the healthy parts continue and the rest ends in a so-called bad bank, Finnish Prime Minister Jyrki Katainen said in an interview in Norway today. “There must be a possibility to restructure the banking sector because it doesn’t make sense to recapitalize banks which are not capable of running.”

Quote:

“Hopefully the ESM will be in force” by the time Spain’s bailout funds start flowing, Katainen said. “It would be simpler and better in many ways and I have understood that the majority of the euro-area countries would support using the ESM instead of” the European Financial Stability Facility, which entitles Finland to collateral, he said.

Well with today's bond debacle I would presume that the ECB will be buying this ****e like crazy tomorrow, and getting some very irate phone calls from those prick Geitner & Bernanke this evening for*****ing that ramp job away.

Yeah Jubber. NOBODY can scam millions of people like OUR criminal banking class.

What indication have we had over the past year that the Fed and Treasury are interested in any of the PIIGS banks getting bailouts? Yes, the Fed did some hefty swaps with the ECB just prior to the December LTRO, but other than that . . .

Quote:

On Saturday, the Spanish government acknowledged it would seek outside assistance for its banks after the eurogroup —finance ministers from the 17 euro countries — agreed to offer Spain €100 billion in bailout loans. Spain will decide how much it needs once independent audits of the country’s banks have been completed.

http://www.boston.com/news/world/europe/....

Audits?

Yep, audits - a fast preliminary one and a slower more detailed one. Who knows how much they will lie? I wonder if they will look inside that ****pile called the covered bond? All of the cajas, or just "systemic" ones? Will Spain still be standing by the time they get done? Many questions....

Of course they are triggered - I've finally realized that NOTHING will be allowed to be considered "a credit event," simply because that would immediately cause the cascade-of-cluster****-CDS nightmare.

It IS funny to see them go through the motions each time though.

Yup.



Just a flesh wound...

Quote:

“The unhealthy banks [in Spain] should be brought down or some banks should be possible to chop up” so that the healthy parts continue and the rest ends in a so-called bad bank, Finnish Prime Minister Jyrki Katainen said in an interview in Norway today.

It seems i remember a *TICKER*, written about "good banks" & "bad banks", Or the creation of a "Bad Bank" to stuff with the Toxic Waste/Fraud...

From BB Radio:

Fitch Ratings cuts long-term ratings of 18 Spanish banks.

Spanish 10-year yield hits a EUR-era high.

5 y 6.12%
10y 6.793%

Worst. Bailout. Ever.

6.818%

6.829%

Greek SYRIZA party leader Tsipras says wants to replace the old inefficient bailout program

This market sure wants to rally whatever is thrown at it

Bunds Gilts & Us treasuries yields still ALL rising, very weird

Are we about to get a rally from hell? or die

QE 3 would be the only reason. If we start spiking expect Fed to extend Twist or monetize another $600 bil.

Yields have gone UP for each and every time QE was done thus far.

Yeah...it is front-run. The effects of QE happen before J6P has a shot to reap the reward.

"Rescue me", said one drowning man to another.