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.
On Sunday, Greek PM Alexis Tsipras put his political future and, more importantly, the future of the common currency in the hands of Greek voters. It was the political equivalent of pushing one’s chips all in at the poker table and after Sunday’s referendum, Tsipras appears to have been holding a better hand than Junker, Dijsselbloem, and Merkel.
Oil declined after the biggest four-day rally since January 2009 in New York amid estimates that U.S. crude inventories advanced last week from their highest level in at least three decades.
West Texas Intermediate futures fell as much as 3.9%. Crude stockpiles probably rose by 3.25 million barrels last week, a Bloomberg News survey shows before an Energy Information Administration report. Talks resume on Wednesday to resolve the biggest U.S. oil-worker refinery strike since 1980.
Greece’s historic referendum is in the books and confusion now reigns in Europe and in stock and bond markets across the globe. Put simply, no one — not the politicians, not the analysts, not the traders — has any idea what happens next because there simply is no precedent for a voter-supported exit from the EMU.
The Spanish implosion in breathtaking in every way: Human Flight, Capital Flight, Real Estate, Employment, and Taxes. The cost of a full bailout is now €300 billion, up from a preposterously low €30 billion projection in June.
€300 billion should not be shocking given my statements on June 9th in Bailout Lite? There's Really No Such Thing; €30 Billion Needed? It's Now €100 Billion; Contagion of Economic Idiocy.