Spanish bailout: Kicking the can down the road again

As the dust settles from the bailout package announced on Sunday for Spanish banks, many analysts believe that the bailout will do little to stem the crisis in Spain and that eventually, the entire Spanish economy will have to receive a massive infusion in order to prevent its collapse. Guardian: Other European leaders admitted that the bailout decision had been taken to avert yet another moment of panic in Europe's long-running debt crisis. "We have managed to avoid a major crisis but the problems are still there," Finland's prime minister Jyrki Katainen told Reuters. Investors worried that the bailout was a temporary solution to Spain's problems as it falls back into recession and suffers 24% unemployment. "Call it what you like, but this is a bailout, the first (and only for banks), but most likely not the last for Spain," said Oliver Burrows of Rabobank Credit Research, who pointed to the amount of government debt held by Spanish banks. "We suspect that inevitably the...(Read Full Post)