In the wake of the collapse of the Portuguese government comes the not unexpected news Portugal May Need $99 Billion Rescue

Some Weigh Restructuring Portugal’s Debt

Can Merkel

Make Up Her Mind?

Spotlight on Spain

Spain's Capital Shortfall "Substantially" Higher than Bank of Spain

Admits

Spain's Nightmare Scenario

An S&P "nightmare" scenario quoted by El Pais, not only assumes a fall in housing prices by 45%, it also assumes GDP to fall by 20% between 2011 and 2015, a destruction of a quarter of today's jobs and interest rates to reach 17%. In this worst case scenario Spanish banks and savings banks would need an injection of public capital of €64bn, equivalent to 6% of GDP.