Spain's bailout loan questioned by Britain's Nigel Farage

The UK's Nigel Farage appears before the European Parliament in this short video:

http://www.zerohedge.com/news/farage-euro-titanic-has-now-hit-iceberg

He concludes that "the Euro Titanic has now hit the Iceberg and sadly there simply aren't enough lifeboats."

Click on the above link and scroll down to the video to hear a short speech about the ridiculous terms of last week end's Spanish bailout. It was actually a 3% loan from the European Central Bank, and he says that 20% of that loan had to come from Italy.

So Italy has to borrow $20 billion at close to 7% interest in order to loan the money to Spain at 3%.

I suppose it takes an economics degree to understand the wisdom of that deal, especially when Italy appears to be the next in line for a bailout. Perhaps Italy will then get a similar 3% loan, and Spain will have to borrow money at near 7% to loan to Italy???

(After this $100 billion loan was announced, Moodys dropped Spain's credit rating 3 notches, and their borrowing cost rose from 6% on Monday to 7% today. Obviously, the markets were truly impressed by this loan.)

It looks like everyone is borrowing more to loan money to each other. If they do it fast enough, perhaps every country can borrow itself out of debt.

I need to hire one of those economists as my bookkeeper. If I borrowed twice as much, I might actually make money out of the deal.