Thursday, May 31, 2012

DON'T START shouting "Spanish bank run", at least not yet, in spite of the figures: yes, $82bn was sent abroad last month, but if you look at the data (summary in Spanish here) it turns out that 2 thirds of it, $41bn $54bn, is foreign money leaving the Spanish stock and bond markets. Only a 3rd, $27bn, is Spanish money leaving the country, and virtually all is by financial institutions placing the liquidity that they received twice from the ECB. Families and companies have sent abroad just $1.8 million.