Spain’s Bailout Boost Quickly Turns to Rout


Investors fled from Spanish government debt on Monday, an immediate rejection of the country’s planned bank bailout by the constituency it most desperately needs to impress: the buyers of its own government bonds.

The market rout puts Spain and the euro zone in a dire position. The bailout plan—in which Spain agreed to accept up to €100 billion ($125 billion) to recapitalize banks—was hatched to alleviate the concern that Spain itself could be dragged down by the declining fortunes of its lenders.

But confidence in Spain is deteriorating, not rising. 

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: