AUDIO: Markets 'confused' over Spanish bailout

Curious how in the New Normal a nation is brought to its untimely end without a single shot being fired? Dimos Dimosthenous, who has worked at the Bank of Cyprus for over 30 years, explains: "That will be the end. Our jobs, our rights, our welfare funds will be lost and Cyprus will be destroyed." In short: not with a bang, but a bailout.

In the next of the series, fund manager Julian Chillingworth highlights the best investment decision he’s ever made – and points to one that could follow in its footsteps.

  Anyone who wants to get an inside look at both the European banking system and the politicians in charge of fixing it need to only look at Spain’s Bankia. Bankia was formed in December 2010 by merging seven totally bankrupt Spanish cajas (regional banks that were unregulated). The bank was heralded as a success story and an indication that European Governments could manage the risks in their banking systems.

Just in case anyone is confused about how fixed Europe is, insolvent Spanish TBTF megabank, which F'ed last year and had to be bailed out by the government, will post earnings (and in this case we use the term very loosely) next week at which time it will report the biggest corporate loss in Spanish history.

Canadian Finance Minister Jim Flaherty said he’s not worried by the recent wave of businesses spinning off real estate assets into tax-preferred trusts. Canadian Tire, the country’s largest sporting goods retailer, said May 9 it will create a $3.5 billion real estate income trust, or REIT, in an initial public offering this fall, becoming the eighth company to either sell or propose such an IPO this year.

In the too stupid to make up category, Rajoy defends ‘victory’ for EU credibility Mariano Rajoy, the embattled Spanish prime minister, has defended the eurozone’s €100bn bailout for Spanish banks as a victory for European credibility.

In the wake of Bankia bailouts to the tune of €19 billion, the second bailout in two weeks, yields of Spanish debt are soaring. Spread to German Bonds Hits 5.05 Percentage Points