Bank Run Forces Spain To Request $125 Billion Bailout

Bank Run Forces Spain To Request $125 Billion Bailout

Spain has officially requested a $125 billion bailout to keep its banks afloat after massive deposit withdrawals from the nation’s banks.

Three days ago Spain’s budget minister split with Spain’s prime minister announced the that country no longer had feasible access to borrow money from the financial markets.

He begged for bailout live on the radio after coming to the realization Spain’s banks need a massive cash injection to recapitalize the deposits that have disappeared due to the bank runs that have spread across Europe.

Just three short days later Spain’s economy minister is now officially requested Europe’s fourth bailout seeking $125 billion dollars to inject into the banks

The key thing to realize here is this bailout isn’t to help with the Sovereign debt crisis and in fact will only make Spain’s crisis worse by adding more debt on the nation’s unbearable debt load.

This bailout is simply to inject the banks with capital following the bank run after Spain’s 3rd largest bank announced it was insolvent and Spain is requesting it because they can’t borrow money from the markets at a rate which they will be able to pay back.

Categories: ECONOMY

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