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Sunday, 10 June 2012

Our politicians aren't alone

Our politicians certainly come up with a lot of tripe from time to time, but they have competition in that field.

Spanish Prime Minister Mariano Rajoy has hailed a decision by eurozone finance ministers to help Spain shore up its struggling banks as a victory for the European common currency. "It was the credibility of the euro that won," he told reporters.

And, presumably, the credibility of the Spanish PM that lost. After all only two weeks ago he was telling the world that Spain didn't need a bail out.

Pull the other one Pedro.  How does an inter-government loan to several nearly bust financial institutions represent a victory for the currency?  If the Spanish banks had been able to borrow in the public markets in their own currency, that would have been a victory for the currency, albeit a very minor one.

If that is a victory, lend me a billion, and win again

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