The media have deliberately stayed away from reporting the real problems facing the Spanish economy and the few papers that have reported the reality have played the real state of things down.
But the markets have other ideas and they have increased the interest charged on loans to the country by as much as they can get sending out the wrong signal and starting panic.
The localisation of the banking system in Spain means that a possible collapse will affect ordinary savers who are already in trouble as very few have jobs. The Spanish economy is much bigger than that of Greece so a bail out will not be possible. So where does the Euro go from then on? Spain will have to default, return back to the Peseta and send the Euro down the toilet of history.
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