SPAIN, THE GOOD NEWS: More haircuts….

The Slog

THE BAD NEWS….It’s the ordinary Spaniard being scalped

Another satisfied c-c-c-caja c-c-c-customer

The Department of EU Commissioner Joaquín Almunia is obviously peopled by lateral thinkers: ‘Look, Iceland told the lenders to go stuff it and gave all of them a baldy haircut….let’s do that in Spain’. Boldly going where none had gone before, Almunia’s staff ordered a crewcut on investors….small savers of minimal means who purchased savings products linked to preference shares in in the lenders known as cajas, which specialise in the homebuying sector.

Kop this for Gauleiter sensitivity: the order that went out said that these savers losing their shirts «is a logical step if Spain’s banking system is to be saved».

Startling logic: bankers overlend, con ordinary savers into buying risky stock, then shave them bald to save themselves.

This isn’t some piddling amount: most estimates put the sum between €25bn and €40bn.

Spanish bankers thus hoped…

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