The $125 billion injection to the Spanish banks was not as well received as bulls would have hooped for. As I had earlier commented on, this is nothing more that a misdirection for the sake of taking some of the heat off a probable Greek exit.
Unfortunately, the European financial “gurus” just cannot get any respect after many failed attempts to solve the the financial woes of their poorly designed monetary system. Perhaps they should start to do more than throw some plan against the wall in hopes that it will get street respect. Who do they think they are…Mr. Bernanke?
So, with Spain maybe getting money and now the rest of the bailed out countries pissed off, the Euro sold off and yields on Spanish 10Y are still rising today.
The trend is clear, especially with those countries that are, well bankrupt.
What private investor would be looking to add money to Spanish sovereigns with the knowledge they have been subordinated?