The new millennium has brought a revolution in communication. Thanks to Internet and large transoceanic highways, information flows at same speed as sound. Today everything is known, at same moment and in all countries of world at same time.
This week Spain has given a new world show. A deputy director of IMF appeared in Congress in commission evaluating banking crisis. He appeared as former president of Bankia, a key piece in history of crisis and in rescue of 2012, only time that Spain has been rescued since 1957. But also as economic vice President of Spain from 1996 to 2004, when housing bubble was formed. In 1996 price of a average home in Spain was 3.5 times average wage and in 2004, when Time left government, price was seven times its historical maximum since Isabel Catholic.More information
- Rato: "Guindos demanded resignation and action of Bankia collapsed"
- Guindos responds to time: "Bankia now has a professional management. Compare yourselves. "
- Rato denounces a government plot to end it after ' Bankia case '
As he acknowledged his own time, he has been ousted, abandoned, and betrayed by his party companions for five years, and he decided to tell truth. Not all truth, did not recognize any error in his management to front of Bankia, but was dispatched at ease. With agencies and international media reporting live, Rodrigo Rato threw official version of government on rescue of 2012.
He accused Rajoy of having applied for full bailout of economy and accepting only bank bailout that was only option that Merkel gave him. The Minister of Economy, Luis de Guindos, recognized in his book that in July 2012 re was no money in box but to pay pensions and salaries of officials of following month. Therefore, Rajoy was not in a position to negotiate anything.
Rato accused Luis de Guindos, now minister of economy and previously his subordinate, to be cause of crisis of Bankia and rescue for its bad management. Between December 2011 and August 2012, Spain suffered a capital flight of 25% of GDP, largest of our history and double that suffered in Argentina in 2001 or Mexico in 1994. So time version is also believable.
Guindos is in campaign to be vice president of ECB, and declarations of Rato have arrived in Frankfurt. To appoint a minister of economy, a member of Council of Monetary Authority, would not comply with article 7 of his statutes. And comedy of this week furr deteriorates already battered brand Spain.
The saddest thing is that in crisis of People's Bank have reproduced same mistakes that in crisis of Bankia: denial of reality, underestimation of endowments, exit to bag, placement to savers retailers, etcetera. And Bank of Spain went through crisis of Popular as well as that of Bankia. Luis Ángel Rojo left Bank of Spain in year 2000 being one of most prestigious central banks in world. How much we miss you, master.