Unusual Equity Injection for Bankia

[bmichaud]

http://www.ft.com/intl/cms/s/0/90b3aaae-a818-11e1-b8a9-00144feabdc0.html#axzz1wAcLSBYY

 

In order to get around borrowing directly from the capital markets, supposedly Madrid is looking to inject its own Government debt directly into Bankia.

 

This just keeps getting better and better. With all possible political correctness, are European leaders mentally handicapped? You take on trillions of free ECB money then turn around and buy your own country debt and now face billions in losses as a result of rising rates? Now this maneuver? What a disaster - let's face it, the ECB is going to print one way or the other, but the path to get there sure is entertaining to watch while our economy and corporations continues to take market share from this wallowing economic area.