The latest information out of Europe comes via the Financial Times where Miles Johnson writes that the Spanish are geared up to sign a Memorandum of Understanding with the Troika. Other countries are holding things up, according to this story. And when those issues sort themselves out, the MoU is a go. But no bailout will be needed, because Spain believes just signing the MoU will be enough to cause markets to lower Spain's rates, the story says. I don't find this entirely credible.
The logic behind the Spanish government's view is this:
We are ready to go now as soon as other issues in other countries are worked through
When we do this 'bailout', it won't really be a problem because we will just sign a Memorandum of Understanding, having already done the heavy lifting as to conditi...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.