Somebody has volunteered to give/loan/print 100 billion Euros for Spanish banks. Spain's basic problem is the Spanish government is spending a lot more than it takes in via taxes. They have been borrowing the shortfall. Except that nobody will lend the Spanish government any more money, 'cause no body believes they can ever pay it back.
This 100 billion goes to Spanish banks, but there is little difference between bank and government. When the government borrows money, it borrows it from banks. Spanish banks find it difficult to refuse loans to the Spanish government. Any right thinking bank surely worries about encounters of the unpleasant kind with bank examiners, taxmen, and stock market regulators if they don't do the patriotic thing and loan their government money.
So Spain has another 100 billion to keep things running. How long before it runs out? A year? Two years? Anyone see any signs of Spanish economic reforms that might reduce their deficit?
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