Europe is Fixed… Which is Why Spain and Greece's Banking Systems Are Collapsing Again!

• Europe is Fixed… Which is Why Spain and Greece’s Banking Systems Are Collapsing Again! 
  by Tyler Durden, www.zerohedge.com
  While the US continues to digest the details of the US Fiscal Cliff Deal (the only important item is that it does nothing to address our debt or deficit problems), the EU continues to proclaim the worst to be over… while its financial system crumbles from within.
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  The latest EU official to sound the all clear is German Finance Minister Wolfgang Schauble. On Friday he told German newspaper Spiegel Online that he believes “we have the worst behind us” in the Euro Crisis.
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  It’s an odd statement given that in just October Schauble wasn’t sure that the worst was past. What’s changed since then? Not much aside from Greece finally getting another €57 billion that it’s been waiting for since June.
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  Indeed, Spain’s second largest bank, Bankia, (the bank which received nearly €24 billion in bailout funds in mid-2012) just announced that it needed another €18 billion on Friday. This came after Spain’s own Fund for Orderly Bank Restructuring announced that Bankia had a negative value of over €4 billion.
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  Again, the bank already received €24 billion in bailouts… and it’s worth negative €4.15 billion today. Given that this is the same bank that revised its 2011 €309 million profit to a €3 billion loss what are the odds that even this awful assessment is a bit too rosy?
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  Lest we think Bankia is a special case, consider that the entire Spanish banking system is on life support from the ECB, drawing over €300 billion (for a banking system with a total market cap of a little over €100 billion this is extraordinary).
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  Then of course there’s Greece where the four largest banks announced that they need another €27.4 billion (the entire banking system needs €50 billion). To give this number some perspective, the entire capital base of the Greek banking system is only €22 billion. Keep that €22 billion in mind when you consider that Greek banks are sitting on €46.8 billion in bad loans.
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  read more!

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