Spain calling for help!

Spain Will Seek European Bailout for its Banks!

Breaking News: Economy Minister Luis de Guindos held a press conference today in Madrid, announcing that Spain will seek a European bailout for its banks! 

Turning to economical news, as of June 9th, Spain's banks are at a stand-still and are in need of a major bailout. The amount of funding being provided will be announced by euro-region finance ministers, Guindos said, without specifying when. The aid won’t carry any macro-economic or fiscal conditions, he said. Banks getting aid will have to submit to conditions, while he urges people that this is not a “rescue." True or False?

Reports by consultants analyzing the status of Spain’s banks will be published this month. The head of Germany's central bank, Jens Weidmann, was one of the first to notice the crisis & strongly urged Spanish officials to seek a bailout for troubled banks from the Eurozone's current rescue fund. "If Spain feels overwhelmed by its financial needs, it should use the instruments which have been created for that," Weidmann said in an interview. The news was revealed today, yet more information is expected to come out.

The International Monetary Fund predicted that Spain's weak banks will need  a minimal of 40 billion euros in order to bolster their defenses against a severe financial meltdown. Before the crisis became public, another official (unidentified) said the 17-member Eurozone expected the Spanish aid request "any time now." From witnessed events and upcoming struggles we can determine that if no help is given, the Eurozone sovereign debt crisis will spread its attempts to contain the crisis to Greece, Ireland and Portugal.
Most importantly thrusting the Eurozone into uncharted waters, since Spain's economy is more than twice the size of those three countries combined.

President Obama's thoughts came in quick in order to give his plea of action from the European nations.
He pressed Europe’s leaders to take “decisive” action to stimulate growth while dealing with debt.
“The sooner they act, the more decisive and concrete their action, the sooner people and markets will regain some confidence,” Obama said at a White House news conference. The president also cited Europe’s financial woes to pressure Congress for action on jobs measures that have been stalled since he proposed them last September.

Struggles in Europe could bring economical drag to the whole planet, yet Europe's finest leaders will take quick action, severely avoiding catastrophic consequences in the economy. Stay tuned as the issue gets furthered reviewed and keep you TV's on in order to see how this issue effects you in your specific location.





Sources:  (read more at...)
http://www.bloomberg.com/news/2012-06-08/obama-says-congress-must-act-as-europe-puts-drag-on-u-s-economy.html
http://www.bloomberg.com/news/2012-06-09/spain-seeks-125-billion-bailout-as-bank-crisis-worsens.html
http://www.heraldsun.com.au/business/german-bank-chief-urges-madrid-to-seek-bailout/story-fn7j19iv-1226390129851