Spain Goes From Bad To Worse

Breakaway Consciousness

via: ZeroHedge
by: Tyler Durden
July 18, 2012

Tyler Durden's picture
Despite the world and their lemur believing that, with a self-referential EUR100 billion bailout (loan) for its banks and a ponzi guarantee scheme for its insolvent regions, all will be well and more debt fixes too much debt, Spanish 10Y yields are back near 7% and spreads over 575bps. The reason – simple – the backbone of their credit-fueled economic growth has crumbled and is now crumbling faster. As the FT reports today, Spain’s housing and banking sectors continue to deteriorate, grim new government data showed Wednesday, providing the latest indication that the country’s economy remains caught in a protracted recession. House prices declined at the fastest pace since the start of the crisis in the second quarter, the public ministry said, and bad loans increased for a 14th month in a row, the Bank of Spain reported. What is…

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