The Great Spanish Crash, Part 4/4 Reply

Bankia begins failure

Spain’s conservative government elected in 2011 found that it was impossible for them to employ the usual tool–currency devaluation–to deal with the crisis, as their currency, the euro, is linked to the rest of the Eurozone and thus out of their control. So they relied on spending cuts, civil-service pay cuts and tax hikes, along with privatizations. These hit education, social services and the health system and provoked a reaction among the Spanish people.In May, 2011 more than a million of them took to the streets. This was the Indignados (or 15 M) protest movement which started in Madrid and was to inspire resistance around the world, including the Occupy initiative in the U.S. Then Bankia–a new entity made up of two ailing savings banks, Caja Madrid and Bancaja, failed and was bailed out by the government to the tune of 19 million (more) euros.

Here’s the link to Part 4/4:

Video courtesy of rose496900yt1


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