Global Currencies and Interest Rates- Spain Needs Life Boat- Spainsh Banks “RAGE”; Roubini Spain should Default NOW

 

• Spain will need rescue according to Merrill - "Spain's debt crisis may force the country to tap the EU-IMF rescue fund over the next two to three months and set off a political storm, according a confidential report by the Bank of America Merrill Lynch." London Telegraph
• Spanish banks “rage” at end of ECB 12 month liquidity tender - Spain’s banks have been lobbying the ECB hard to take action and alleviate the stress that will arise as a result of the 12 month expiration. Spanish banks accuse the ECB of “absurd” behavior by permitting the tender to expire. “Any central bank has to have the obligation to supply liquidity. But this is not the policy of the ECB. We are fighting them every day on this. It’s absurd.” FT 
• Greece - N Roubini oped in the FT this morning - says Greece should default now - “Greece’s best option is an orderly default.” The country’s austerity measures will impose cutbacks that are too large for its economy to bear. FT  
• ECB takes the place of the interbank market in Europe - The ECB is currently lending close to €900bn ($1,098bn, £728bn) to eurozone commercial banks, jumping to near-record levels since the creation of the central bank 11 years ago. The ECB has become a lifeline for some of Europe’s ~3K weaker banks. FT