Is Germany Preparing For A Spanish Default?

HJ: While the world’s media spotlight was intensely focused on Greece for months, other economies were beginning to crumble– namely Italy and Spain, among others.  Now the enormous downturns these two behemoth economies are are experiencing are beginning to overshadow Greece and its problems.  The fact is, there is no money to bailout Spain or Italy or any of the other faltering economies.  And so Germany begins to turn its back (and rightly so) on Spain as it extends it proverbial hand for its own bailout. – Truth

Wolf RichterTestosterone Pit | Aug. 1, 2012, 9:49 AM

Hope persists that Germany would not only bail out Spain and the rest of the Eurozone but would also tolerate the Fed-ization of the European Central Bank.Even Treasury Secretary Tim Geithner was hounding German Finance Minister Wolfgang Schäuble, who was on vacation like the rest of Europe.And yet, Deutsche Bank, Germany’s de-facto vice-ministry of finance whose CEO serves as éminence grise behind elected officials and bureaucrats alike, well, that venerable institution at the core of Germany Inc. appears to be closing the book on Spain.

And it’s Spain everyone is worried about. Not Greece. Which appears to have become a fait accompli. Even with Geithner. After his meetings with Schäuble and ECB President Mario Draghi, Geithner called Spanish Economy Minister Luis de Guindos. According to “sources of the Spanish government,” they tossed around solutions to stabilize the Eurozone and resolve the debt crisis that is ravaging Spain and Italy. Not a word about Greece. It has fallen off the agenda.

Read the rest of the article here: Business Insider


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