"Spain Is Fine"
If there is one physics rule that the central planners know all about, in their utter disdain of virtually every other natural principle, regression to the mean being the most prominent one, it is the law of communicating vessels. Only instead of water, the central banks use monetary liquidity to achieve equivalency across the various different vessels a/k/a capital shortfall locations. Such as the Spanish financial sector. Think that "Spain is fine"? Look at the chart below and think again. And don't even get us started on Portugal. How long before the residents of Portugal and Spain pull a Greece and withdraw 20% of statutory bank deposits in a year, in the process starting the terminal unwind of these two countries financial cores and putting them on day to day ECB life support? Oh wait, they already have. The chart below, showing Spanish bank borrowings from the ECB, is self-explanatory, even when factored in for "seasonal adjustments."
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