Spanish Bank Bankia - Major Bailout

BBC News: Reports that one of Spain's biggest Banks ; its 4th; Bankia will ask for a major bailout by the Spanish Government. The article states that the Bank will ask for 15 billion Euros.

Lets Get Real:

The Greek exit from the Euro folks could be the spark that sees Spain having to ask EU for billions in bailout. It has been argued that there is a deep black hole of Spanish debt held by Spanish Banks. As the article notes the Banks have to deal with a busted property boom and of buying Spanish debt. Also as the article notes Spain's richest region, Catalonia also needs a bailout. Thus folks it can be argued that Spain is the next Greece, the contagion from Greece has already created a cancer in the weak body of the Spanish State. Thus IF Greece does exit the Euro expect the Markets to start attacking Spain, their bonds might hit the 7%. At present Spain is paying over 6% to sell its bonds, the new Spanish PM has stated that this cant go on forever, Spain can not afford to to loan at that rate. Thus the Greeks voters have the future of Greece and Spain in their hands when they vote on June 17th.