The Bank of Spain?s new governor, Luis María Linde, has said that he is a man of courage and that he doesn't talk turkey. That seems to be true, at least for now.
Recalling that the BOS erred by not coming up with the provisions required of it and also erred when asked to gauge the extent of the crisis in Spain, Linde has questioned whether it is urgent of not for the ECB to buy Spanish debt. Rajoy and De Guindos maintain that this is critical.
Linde's statement seems rather quixotic, because Spain does need to raise funds as soon as possible.
Governor Linde needs to explain some feasible alternatives that will keep the risk premium from continuing to rise and keeping an intervention at bay.