MADRID—Spain has been quietly tapping the country's richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds, raising questions about the fund's role as guarantor of future pension payouts.
Now the scarcely noticed borrowing spree, carried out amid a prolonged economic crisis, is about to end, because there is little left to take. At least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt, according to official figures, and the government has begun withdrawing cash for emergency payments.
=> nobody willing to lend them money, so they take CPF and lend to themselves
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Note it is not wrong to use small amount of CPF to buy government debt ... the wrong part is putting all eggs in one basket ... and it is rotten basket (junk)
