Spain Bailout Terms: 100 Billion Euros for 15 Years at 3% Interest, No Payment for 5 Years; How to Pay it Back? Hike VAT on Consumers

According to a Google Translate from Libre Mercado, Spain will receive ?100 billion for 15 years at 3% interest with no payment due for 5 years.

How will Spain pay for this?
By sticking it to taxpayers, that's how.

Pressure on Spain from Brussels to hike the VAT is intensifying according to a second article on Libre Mercado.

Don't worry, tax hikes will be done "very carefully so that social needs are met". Expect an announcement by June 30.

Can someone tell me why taxpayers are responsible for banks making stupid loans?

Other than platitudes like "socialize the losses, privatize the gains" there is no answer or excuse.

Yet it happens nearly every time (until voters finally tell bankers to go to hell). Hopefully that is the message this Sunday in Greece.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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