Olé!

From Bloomberg:

Spain asked euro region governments for a bailout worth as much as 100 billion euros ($125 billion) to rescue its banking system as the country became the biggest euro economy so far to seek international aid.

“The Spanish government declares its intention of seeking European financing for the recapitalization of the Spanish banks that need it,” Spanish Economy Minister Luis de Guindos told reporters in Madrid today. A statement by euro region finance ministers said the loan amount will “cover estimated capital requirements with an additional safety margin.”

I’m so surprised by this.  Oh wait, no I’m not, told ya so yesterday while they were all denying it, see ‘Pulling Brussels From a Shell‘ and ‘Spain’s Addiction‘

Now what?

The good news is that they went BIG – $125 billion was more than most expected.  But we don’t know if they’ll get it and on what terms if they do and how the markets will react (after the kneejerk).  And what does this mean for Italy?  Will there be any money left?

Source:

Spain Seeks $125 Billion Bailout as Bank Crisis Worsens (Bloomberg)