The Bundesbank said in April 2011:

>This sharp rise in debt reflects extensive measures to stabilise the financial market of €241 billion chiefly in connection with the FMS Wertmanagement resolution agency (HRE) and the First Winding-Up Agency (WestLB). According to the current provisional figures, the cumulative impact of financial market support measures on the debt level since 2008 amounts to €335 billion, or 13.4% of GDP. Growth in debt contrasts with the assumption of extensive risk assets. Assuming the assets can be realised over time, this will result in a decline in the future debt level.<

http://www.bundesbank.de/download/presse/pressenotizen/2011/20110413.maastricht.en.php  

And in April 2012:

>The financial and government debt crisis had mixed direct effects on the debt level last year: while the scaling back of financial market support measures - in particular, the repayment of capital assistance - caused the debt level to fall by €17 billion on balance, debt rose by €14 billion due to assistance loans to euro-area countries. According to provisional figures, the cumulative impact of financial market support measures on the debt level since 2008 amounts to €291 billion, or 11 ½% of GDP. Support measures in connection with the sovereign debt crisis in the euro area accounted for a total of approximately €20 billion, or 0.8% of GDP, of this. The increase in debt was accompanied, for the most part, by an increase in financial assets as defined in the national accounts, such as credit claims. A future realisation of risk assets or repayment of assistance loans will result in a decline in the debt level.<

http://www.bundesbank.de/download/presse/pressenotizen/2012/20120417.maastricht_schuldenstand.en.php

So, 291 billion or 11,5% of gdp.

Another black hole for Bankia

Ooops, they found another hole of €2.5bn in the accounts of Bankia. As El Pais reports this morning, Bankia's auditors noted that Bankia booked estimated future tax credits  as a real assets to the tune of €2.5bn. But to save these taxes, Bankia would need to achieve a certain level of savings, which the auditors do not think as realistic. The auditor said without these savings, the money will have to be charged against equity of BFA, Bankia's holding company. The meaning of all of this is that Bankia will need more equity capital on top what is being pledged by the Spanish government. The new CEO said he would present a restructuring plan for the bank by the end of June.

The blame game starts in Spain

The Spanish government spent most of the day yesterday trying to blame somebody else for failure of Bankia, according to El Pais. Not a word of criticism of Rodrigo Rato, the former IMF chief who led Bankia into a state of near-bankruptcy, but instead the PP criticises Miguel Angel Ferandez Ordonez, the central bank chief, for having forced Caja Madrid to merge with Bancaja and several other smaller cajas in 2010. (The situation is, of course, very different. Bankia was essentially controlled by the PP, who has been appointing most of its council members. Passing the blame onto other is absurd in this case, and it shows the mindset of what has turned out to be one of the most incompetent governments in the eurozone. In a few months, Rayoy managed to mess up an ECB nomination, trigger a bond market attack because he postponed his budget until after the Andalusia election, and now mismanages the Bankia situation.)

Spain is playing hard to get

We cited an El Pais story yesterday, according to which the EU Commission was ready to grant Spain an extra year to get the deficit down to 3%. The FT has more details of this story this morning. The offer includes a quid-pro-quo,  an independent audit of the restructuring plan for its banks. The Commission also wants to strengthen fiscal control of the autonomous regions. The article says the Spanish government was divided, as some members feared that such a delay would be perceived in markets as evidence of creeping fiscal indiscipline.  The FT quoted an EU official as saying: "I do not understand the Spanish government as wanting an additional year." The paper said it was likely that Spain would accept the key demand of external supervision of the restructuring of the banking sector.

Daniel Cohn-Bendi[t] warns of a return of military dictatorship in Greece;

Soooo, threatening a bank run wasn't enough. How about threatening a return of military dictatorship? You see, it always comes down to a use of force if you ... etc.

I have a t-shirt with that on it. And whatever you do, DON'T BLINK!

next step, pretend they were going to do something like that, eventually, and meanwhile finagle ways to adopt the policies (as few as possible, natch) and keep power for themselves.

beppe's taking no prisoners, on a righteous roll, ranting like a stevedore about the absurd reality the casta live in, while the poor people are pressed like grapes, losing all the social benefits their fathers and grandfathers fought and died for after the desolation of fascism.

he really is very funny, and his rage palpable. he is the only political figure who's offering anything untried before, and people are turning out in droves to hear him speak.

last night on 'servizio pubblico' a great talkshow with michele santoro, they had di pietro's sister concetta filmed offering her advice to the government which, summed up, was basically, if you're driving towards a wall, remember that's what reverse gear was designed for.

she was pure italian contadina soul, just perfect in her wisdom and down-home simplicity. tremonti was on for the whole show and after she spoke, said he'd take her advice and turn a new page in his thinking.

having a 'come to concetta' moment, after stoutly defending his track record as economic minister with bunga man, to derisory audience reaction.

if beppe gets his way italy will exit the euro before becoming greece 2.0.

pretty much everyone who can afford one has an audi already, so auf wiedersehen barroso, merkel and buba, the germans can come back and buy their wine in deutchmarks again.

fuck the euro.

The power of knowledge is in mortal combat with the knowledge of power. It really is that simple... That's the Edenic apple we are all munching on.