This morning, it was announced that a vote in the Cypriot parliament on the bailout deal hatched with the EU over the weekend will be postponed until Tuesday. The deal contains a haircut on depositors – meaning those with deposits in the bank have to pay for part of the bailout, directly out of their accounts, right away.
A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so.
Yahoo! Finance reports Spanish bailout could reach 100 billion euros
A bailout for Spain's teetering banks, once requested by Madrid, could amount to as much as 100 billion euros, two senior EU sources told Reuters on Saturday.
By Sammy Pollack:Late Saturday, eurozone leaders announced a plan to lend Spain up to $125 billion in an effort to stabilize the Spanish banking system. So far, the global markets have responded very well to the news. As I write this, Japan's Nikkei is higher by more than 2%, the euro (FXE) is higher by nearly 1%, and U.S. equity futures are sharply higher.