Spain Opens Door to Asking for Help

23

Spain’s Prime Minister held a press conference, discussed the situation, his government’s steps. reforms and liquidity issues. He refused to answer whether Spain will ask for help or not. This is a change from the previous approach. He also said that he wants to know what other measures the ECB will take before he will take a decision. The days of denial are over.

Rajoy is preparing the public for a U-turn in policy. The next step seems like an official bailout request.

A Spanish aid request was the missing piece needed for the ECB to act and buy bonds. Rajoy missed the opportunity to ask for aid in a public appearance he held together with Italian PM Monti.

Rumors about a Spanish aid request and a response by the ECB were circulating beforehand.

Draghi conditioned ECB bond buying (even printing money US / UK style) with a request from the governments, and staff work at the ECB.

Draghi’s words disappointed the markets, that were expecting immediate action, but since then, the markets have recovered.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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