Over the weekend a Spanish bank, Cajasur, was seized. This is a large Spanish bank with $23.9 billion or 0.6% of Spain's assets.
Now the IMF is gunning for Spain and it looks like they are after.....their pension system and wages. From the IMF press release:
A dysfunctional labor market, the deflating property bubble, a large fiscal deficit, heavy private sector and external indebtedness, anemic productivity growth, weak competitiveness, and a banking sector with pockets of weakness. Ambitious fiscal consolidation is underway, recently reinforced and front-loaded. This needs to be complemented with growth-enhancing structural reforms, building on the progress made on product markets and the housing sector, especially overhauling the labor market. A bold pension reform, along the lines proposed by the government, should be quickly adopted. Consolidation and reform of the banking system needs to be accelerated.
The EU is also calling for Spain to modify it's pension system by raising the retirement age and scaling the benefits. The IMF is zeroing in on Spain's labor markets. So why exactly are they doing this and why are workers supposed to be stuck with the housing bubble and derivatives bill as sovereign nations become mired in debt?
The IMF is gunning for workers' wages, trying to kill collective bargaining. The IMF seems to dislike job security too and is promoting making it easier to fire people. It appears the IMF wants temporary labor markets, more global migration as a cheap labor agenda item. So, precisely how is that to help Spain build up their real economy and advance particular industries? How is that supposed to address the collapse of a housing bubble along with it's associated gambling chip derivatives?
Why aren't the banks being called upon to suffer austerity measures?
Meanwhile Spain is being blamed for a further weakening of the Euro. Gold is on the up again as safe haven.
Now Four Spanish banks merge, with €135 billion involved. ZeroHedge:
Just as the subprime collapse started with a few names toppling, this could easily be the start of implosion of the allegedly insolvent Spanish banking system.