Quote Originally Posted by SoFarSoGood View Post
The Germans (with the Dutch and Finns) have apparently backed down on the deal for the ESM to refinance Spanish banks. This means Spain has to find another 60 - 100 bn euros itself. Spanish 10 year bonds at 6.01100.
These nonsensical comments by the finance ministers put all the potential good work from the lowering of of bond prices since June at extreme risk.

I have no proof but the only reason anyone would do this is essentially I believe to frighten Italy, they must believe they can just about bail Spain out.

There comments reveal a paradoxical problem for lowering bond prices, the market lowered prices due to the expected gain from the ESM bailing banks separate from sovereigns. The germans then point at the lower prices and proclaim the austerity confidence fairy in working, so the row back on capital injections and therefore endanger the Euro itself.

Ireland if it does not get the legacy issue sorted with bank debt through the ESm like Spain will require a second bailout, the germans will proclaim we slacked off when in fact we have met every condition they put us and still the shamrock wont grow.