2012-09-04

Stick a fork in Spain?


Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain
In July, Spaniards withdrew a record 75 billion euros, or $94 billion, from their banks — an amount equal to 7 percent of the country’s overall economic output — as doubts grew about the durability of Spain’s financial system.

The withdrawals accelerated a trend that began in the middle of last year, and came despite a European commitment to pump up to 100 billion euros into the Spanish banking system. Analysts will be watching to see whether the August data, when available, shows an even faster rate of capital flight.

See also: Nomura: "Spain Will Need Full-Blown Bailout"
Is Spain Running Out Of Cash?

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