This was in the press Thursday evening/Friday morning and helped partially fuel the dip just below 1.3000.
The crux of the story is that Spain’s social security fund is being used to raise cash to pay the governments debts. In return, it is getting Spanish government bonds. Shock and horror ensued.
But doesn’t every countries social security fund invests in the bonds of its government?
Hell, the US Social Security Trust Fund consists solely of $6 trln in Treasuries.
Sounds to me like Spain is just playing the game the same way everyone else is…
