On the need for Spain to formally apply for an OMT-style bailout

Spanish Prime Minister Mariano Rajoy's economic policy is in tatters. Spain's economic descent is now accelerating, with output shrinking 0.7% in just the last quarter alone - the worst since crisis began in 2009. For the full year, output has fallen 1.8%, retail sales have plunged a remarkable 10.7%, and vehicle ales have fallen 17%. This is diastrous. This is Greek-style debt deflation.
The Spanish cannot say they weren't forewarned. Those who understand how an economy in a credit crisis works knew his plan was going to be disastrous. And so it has been.When Rajoy was campaigning for office, he was quite clear about what he planned to do. And he was elected anyway - with a sizeable majority to boot. Clearly, the Spanish have no one to blame but themselves.
But, we're here now. The ques...

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.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More