The Spanish IBEX is falling 3%+, falling sharply over the past hour after Spanish authorities said they want higher loan loss provisioning against bad debt from the country’s banks, meaning a further shrinking of the banks thru asset sales and more dilution if equity needs to be raised. The IBEX is again testing the lowest level since ’03 as Banco Santander and BBVA are both down about 5%. Bankia is down for a 6th straight day by another 3.5%. In response, the Spanish 10 yr yield is back above 6% and 5 yr CDS is wider by 5 bps to 515 bps.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.