The crisis rolls on down the road.
The Spanish Finance Minister Luis de Guindos confirmed on Friday that Spain will formally request aid for its banks on Monday, CNN reports. Speaking at a meeting of finance ministers in Luxembourg, de Guindos also said that the conditions attached to the request, which will take place in a letter just two paragraphs long, would be ready by July 9. Late Thursday, an independent audit of Spain's banking sector concluded that, under a worse-case scenario, Spain could need as much as $80 billion to recapitalize its banks.
It is important to note that the key problem remains that F PIIGS countries continue to spend much more money than they take in, which means they continue to run huge deficits, which means they will need bailout after bailout. Either this stops by some major governmentcuts in spending in the countries, or money printing must accelerate to prop up the debt that will need to be issued to fund the deficit.
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