Simply put, Europe is a mess right now and the nature of the problem lies in Spain.

"As money moves out of the banks in Spain and into Germany, the banks get weaker and weaker," says renowned economist Joseph Stiglitz. "The lending gets weaker and weaker. The economy gets weaker and weaker. It's a vicious downward spiral."

Sitglitz tells Business Insider chief Henry Blodget what the EU should have done to ensure the success of the euro in the video below:

Produced by Kamelia Angelova, William Wei & Daniel Goodman

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