Julio Vildosola is leaving Spain with his savings

Tuesday, 4 September, 2012

“After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.” The New York Times: Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain.

Money is leaving Spain at a dramatic rate and yesterday’s news that Madrid had decided to hand over ?4.5 billion to insolvent Bankia, which last week reported huge deposit outflows, is a sign of the times. Back in June, Spain formally asked the ECB for a ?100 billion bailout for its insolvent banking system, but when one looks at the rising level of the country’s nonperforming loans, more, much more, will be needed. By voting with his feet and emptying his bank account, Julio Vildosola is signalling that Spain is nearing the tipping point when the money runs out. The prospect of a full-blown bailout for the remainder of the Iberian Peninsula is an appalling vista, but it beckons.

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