The Spanish patient: A full bail-out of the euro area’s fourth-largest economy is looming

From economist.com

IF SPAIN were a patient, the mood in the hospital ward would be tense. Every attempt by local specialists advised by renowned European consultants to treat the sickness brings no more than temporary relief. Even more worrying, the relapses after each dose are happening sooner and sooner. Spain’s chances of avoiding intensive care—a full bail-out—are receding to near vanishing-point. The symptoms of Spanish sickness are manifest in ten-year government bond yields touching 7.75% on July 25th; previous bail-outs of Greece, Ireland and Portugal occurred not long after rates had surpassed 7%. Even more ... (full story)