Bad Bank..

Weeks ago the news about the creation of a "band bank" in Spain was taken as a miracle for the banking system and even for the markets (Ibex 35)... Weeks later its a reality, the prime minister Mariano Rajoy will decree the framework for the bad bank!! It will be managed by the country's central bank and the F.R.O.B.!! 

But what the hell is the Bad Bank???.. Well theoretically the bad bank will have the function of getting, buying, catching all the bad loans and souring assets (Many of them related to the real-state sector) to make a new bank (obviously bad one!!) and help the rest of the banks and bank savings to get well and clean their assets. Actually the banks have already been forced to recognize steep looses on the assets and loans, they don't have another option the last years they have been given and given loans to companies and people who don't have money to pay them right now and they are considered as provisions in their balance sheets or bank shit?...

The announcement was today!! and how I knew it just cause I saw the Spanish stock exchange which has got +3.13% today!.. That doesn't mean absolutely anything cause of the volatility rules theses last days.. 

We are talking about a bad bank not an idiot bank!!.. Cause another function is to sell the sour assets to another investors (They have to be really stupid ones), we know that right now its so hard or even impossible  cause the property market had crashed! The houses decreased their value around 20% and the experts say that it will reach 30% and will stabilize til 2015 - 2016. So the bad bank has to hold those assets to sell them till 2015.