11 June 2012



No need to get over-excited.  It’s the Fund for Orderly Bank Restructuring.

Should it not be FOBR?

In Spanish, it comes out as FROB.

Oh, it’s Spanish is it?

Indeed so.  It is the mechanism through which the ESM (or perhaps the EFSF or perhaps both) will provide funds to support the Spanish banks who have lent far too many euros to property developers.

What’s this going to cost?

100 billion euros, or approximately 2,200 euros for every man, woman and child in Spain.  But don’t worry, the Germans will pay.

Do say:  The solidarity of the Eurozone will resist the iniquitous depredations of the markets.

Don’t say:  Por favor, can I have an overdraft?

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