There has much debate if and when Spain would request for a full-fledged bailout from the European Central Bank. There’s not much clarity on the International Monetary Fund’s role in the whole process. For the ECB to officially start the Outright Monetary Transaction (OMT, which is synonymous with the bank’s unlimited bond buying program from the secondary markets) for a …
Dow Industrials Closes Lower On Spain Worries; Banks Slip In Europe
[Chart courtesy of MarketWatch.com] The major indexes finished mixed today with the Dow Jones Industrial Average sinking for the first time in three days after Spanish Prime Minister Mariano Rajoy contradicted a previous Reuters report that said the country could seek help from the European Union as early as this weekend. The Dow Jones Industrial Average (DJIA) closed 33 points …
Spain Is Hoping To Secure Bailout Without Troika Supervision—Will That Work?
The question that’s on everybody’s mind is should Spain seek for a bailout to tide over the current crisis? Even Europe seems to be divided on whether Madrid should actually seek ECB intervention. Spain must ask for ECB help now to avoid panic moments later, feels Luis Garicano, a professor of Economics at the London School of Economics. Since borrowing …
Why Spain May Not Seek A Bailout Anytime Soon
The European finance ministers met in Cyprus on Friday to discuss financial issues in the EU. One of the sticking points has been whether Spanish Prime Minister should seek ECB help by agreeing to adhere to the strict budgetary and fiscal conditions that are a prerequisite for such intervention. If Spain refuses to seek help formally, will the rally in …