The Spanish Government is now openly admitting that doors into the credit markets are closing by the hour. But Finance Ministers of the G7 major economies have yet to take any action. Spanish Treasury Minister Cristobal Montoro sent out a dramatic SOS this afternoon poining out that the spread between the country’s 10-year bond and German/US debt was now in excess of 550 basis points. But all that happened was that his comments on Spain’s issues sent the euro down still further.
The U.S. Treasury said in a statement that the G7 discussed ‘progress towards a financial and fiscal union in Europe’, but made no joint statement and took no immediate action.
This is all turning into some kind of sick joke. Brussels is asleep, Berlin is split several ways, and the G7 is on the verge of becoming catatonic. A Brussels source tells me the EFSF is preparing a line of credit for Spain, but the EFSF is a busted flush in terms of money attraction…and the Spaniards are down for one euro in eight of the fund’s capital.
“I’m not a great fan of those target headlines that keep being missed anyway,” Lagarde told Reuters in an impenetrable interview full of dickheaded bromides, adding “We need to agree on a comprehensive set of principles to enforce over time. The master plan that everybody signs up to will be important because it will set a vision, it will set a collective determination.”
Yes yes yes Chrissie Lalalande, but what about Spain right now??
It takes alot to make me sympathise with Hedge Funds, but this profoundly stupid woman is more than up to it.