The 7% solution
This morning, yields on 10 year Spanish government bonds hit 7%. That is a Euro-era record for Spain and a clear sign that the bank "bailout", which basically created billions of Euros more of senior debt to be repaid, didn't work and Spain is again on the ropes. The Spain - Germany spread is almost 550 basis points!
Either Germany and its Northern Neighbors are going to have to cough up a ton of cash (not loans) or the ECB is going to have to seriously print Euros, or the whole enterprise is doomed.