The arrogance of Spain and the EU is truly shocking.
If I were Irish I would be livid. Spain's banks are phut and they have been bailed out by the rest of Europe without any austerity package or punishment. As usual, the bankers who are some sort of workers collective have saved their bonuses and pensions once more by acting like a trade union and bullying their paymasters (you and I) to give them more cash. The EU is more communist than North Korea.
However, all is not what it seems as it is worse than that.
The bailout funds (European Financial Stabilisation Facility) are funded by other European countries. The fund / facility lends money to indebted entities like Spanish banks. Isn't it funny that Spain has already guaranteed a commitment of EUR95.5bn to the EFSF and is effectively asking for it back so its banks can be recapitalised.
So instead of Spain putting its own money in it has gotten the rest of Europe to do so and avoided even more pain than it is currently enduring.
The Spanish elite are happy and the Eurocrats are happy.
However, other Spanish creditors are unhappy as they will be subordinated. With Spain's borrowing costs going up, austerity will just go on longer until Oliver Wyman find the bank's need more capital, Greece turns right and the markets hammer Italy before finally France is hammered and the Euro ends. Unless Germany leaves before then. Which it will.
Let's hope it all happens in September after I come back from my summer vacation in the South of France.
Spain plays with different rules (bloomberg)
Portugal to invade Spain (reuters)
Markets to tank on Monday.