Irresponsible markets

The week started off with some good news for Spain and the decision to dish out 100 billion from the ECB was welcomed. Some on the naive side of world economics thought this was the solution to the problem but then the markets realised that a bailout without austerity measures would mean that the other PIGS countries would demand the same so they have taken the irresponsible step of raising the interest charged on Spanish government loans to an all high of 7% this is absolutely massive for a sovereign state and it means that most of the funds given out by the ECB will go towards servicing the interest on the Spanish debt. Why are we governed by stupid politicians who are not willing to regulate the global markets??