Didn’t they tell us earlier today that they were not making plans for a Spanish bailout?
As the old saying goes, never believe anything until it is officially denied…
Can the IMF put together a bailout for Spain? Sure.
But can it truly bailout Spain? No. It’s resources are insufficient to comprehensively bailout a state as large as Spain.
UPDATE: DowJones now reporting: IMF Talks On #Spain Rescue Loan For Event That Country Fails To Find Funds To Bail Out Bankia, Sources Tell Dow Jones-WSJ.
That’s more limited than the original headline suggested.
EUR/USD ramped to 1.2396 on the bailout headline and is now easing a bit as it looks as though any IMF would be limited in scope.
