A bit of fright from the people who do it best at Roubini Global Economics. They note that the EU/IMF has enough firepower to bail out Spain once, but not twice — something that Ireland “will almost certainly” require despite the relative success of its austerity programme.
Spanish banks will almost certainly require further recapitalization from the government…As long as the health of Spain’s banks remains a huge source of doubt, investors will shun Spanish sovereign debt and borrowing costs for Spain will remain elevated.
