Spain cutting renewable energy subsidies retroactively

crater

Renewable energy boomed in Spain until recently due to generous government subsidies. However the government has taking on an unsustainable $35 billion in debt doing this and is reversing course. Not only will subsidies by slashed, this will be done retroactively. Thus, investors in wind and solar farms there may find they receive no further subsidies going forward. Thus, their government guaranteed investments may become worthless.

This appears to have been a classic bubble. Unwary small investors got sucked in and may lose everything.

Reforms could have unintended political and social fallout. Around 55,000 families have mortgaged their life savings and assets to invest in small solar farms in the countryside — with the guarantee of government-backed returns — in a bid to offset falling incomes from farming.

European Parliament head fears “social explosion” in Spain, elsewhere

“I was born too soon. We could only wet our beaks from local stores. These banksters do it with entire countries!”

European Parliament president Martin Schulz said the economic crisis in Spain could spark a “social explosion” across the continent.

When unemployment in countries like Spain is very high and rising, when a housing market has cratered but still has further to fall, and when that sound you hear is the banksters vacuumming money out of the middle class, then a social explosion is a healthy reaction to unhealthy times.

Floodgates open as four more regions in Spain seek bailouts

The bailouts solve nothing and merely pass money around. This is known as pretend-and-extend. None of the underlying problems can be solved by bailouts. The banksters will of course profit by “wetting their beak” every time the money get passed to them. Oh gosh, please excuse me. I certainly would not want to imply that the banksters were in any way criminal. So instead of saying “wet my beak” I suppose we should call it “fees.” yeah, that’s it.

Like I said, the bailouts aren’t working no matter what the talking heads and financial mouthpieces say.

European bloodbath continues as Spanish 2Y bond is crushed to record high spreads

Translation: The difference between the buy and sell price of Spanish 2 year bonds is at all time hights. This means people think the bonds are increasingly risky. Remember, we are talking about bonds from a major industrialized nation here, a country with huge financial links to many other countries.

And the European Parliament and the banks are just moving money around of the deck of the sinking ship.

The pain in Spain will remain because bankers are insane

Who could have ever predicted that merging seven failing Spanish banks into one big failing bank then offloading the resultant toxic slop into the parent corporation might not be a long-term or even viable solution?

But that’s exactly what European banksters did in a desperate and greedy attempt to further plunder a country so that garbage loans they knowingly made might somehow be paid back.

But now no one has enough money to bail out Spain. Portugal and Italy are in perilous condition too. Greece is insolvent. The greedheads of international finance have shot themselves in the foot.

The banksters may control large entities but really folks, they are willfully stupid, myopic, and need to be kicked to the curb so that real recovery can finally begin.

Banksters on the run

Greece may default, Ireland can’t sell more debt, Spain may fess up to hiding debt. Norway has frozen loans to Greece. Protests against banks are spreading.

The banksters may no longer be able to force countries to pay for bonds that banks knew were dicey and never should have bought in the first place. Instead, bondholders may (and should) be forced to take writedowns on their “investments” whether they like it or not. Insolvent banks must fail rather than forcing people in debtor nations like Greece, Ireland, and Spain to prop up their rotting, corrupt corpses.

It seems the banksters believe in harsh capitalism for everyone but themselves. Hey, bonds can be risky and writedowns are always a risk. Insolvent entities should fail. That’s what capitalism is about, right?

But not for the banksters. They want everyone else to bail them out, always and continually. But their game may be ending soon.

Spain bailout protesters: “We want to be Icelanders!”

Spain protest. juanlusanchez, yfrog

The protests are spreading to Italy too. Good. May the protests spread to the entire Eurozone and bring down the corrupt edifice called international banking.

When the Iceland banking crisis happened, Iceland choose not to be ground under the boot heel of the banks and be indebted for years to come. Instead, they defaulted on their bonds, let their banks fail, and arrested their bankster CEOs. Their economy is now recovering.

Screw the IMF, World Bank, and ECB. They are predators primarily concerned with saving the bondholders of sovereign debt regardless of the effect this has upon countries.

Iceland has shown the world what to do. Let the insolvent banks fail and arrest the criminals. The world will be a better place afterwards.