Monday, April 09, 2012

Iberian Blues...

...continue. At this point the question must be asked, who will exit the Euro first? Most likely one of the larger members who can "afford" to go it alone.

The fetish of false issue and conflict resolution continues unabated. It is a dangerous game.

The reliance of eurozone banks on the European Central Bank was
demonstrated on Monday when Portugal revealed that its domestic banks
were tapping the central bank for record amounts of funding.

The Bank of Portugal said the use by domestic banks for the various
facilities available from the ECB rose to €56.3bn in March – up from
€47.5bn in February and greater than the previous record level of
€49.1bn in August 2010.

Bailed out by the EU and International Monetary Fund in April 2011 for
€78bn, Portugal has €12bn earmarked for bolstering its banks' capital
positions if necessary in the months ahead.

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