Miguel Hernández wrote that in time a photo will yellow. Nobody has ever said that it can also turn green. The Spanish government has taken several photos with bank executives in order to portray good relations, also affirming that they counted on the most solid banks and, until now, articulated a bailout scheme for the entire banking system (known as the Frob) that does not change the bankers position even after they have received taxpayer money.
Over the years, the only critiques this Spanish government has made of the banking system were that it did not provide enough credit. But this argument reversed completely when the government attacked the banks in order to jockey for votes during elections.
Rubulcaba, the new leader of the PSOE and presidential candidate, now contends that the banks issued more than enough risky loans and should not get paid at the public?s expense.
José Blanco and Valeriano Gómez have added to these statements. But was the problem that they didn´t make loans? The plan to protect foreclosed families would just make the credit situation more difficult, especially for low-income families, because the greatest risk for banks will be the higher price of debt.
Our government could create some protection for mortgage owners, but that would leave out a great number of others, many of them from 15-M. If the bank makes risky loans, why don´t they assess them beforehand?
