June 10, 2012
So Spain is the latest country within the Eurozone saga to formally ask for money.
A decision was made last night that Spain would be able to have access to 100 billion euro to inject capital into the Spanish banking sector. The prime minister is pleased with his efforts to protect the financial sector while the people of Spain are in dire crisis.
Spain’s economic problems have now become a whole lot more complicated and will lead to further shocks down the road. The right-wing party won the recent election and now has the mandate to drive through their policies without having to seek support from any other political group as they have an absolute majority.
The solution is to give the banks money so that they can start lending to small businesses and individuals, to kick start the economy again. It seems like I am living on another planet but that way of reviving does not work anymore.