Borrowing by Banks Plagues Europe Despite Aid for Spain

Europe may have sidestepped its latest catastrophe, at least for the moment, by hammering out a €100 billion bailout plan for Spain’s failing banks over the weekend.

But the intervention will do little to address the problem that continues to plague the Continent’s increasingly vulnerable financial institutions. Namely: a longstanding addiction to the borrowed money that provides the day-to-day financing that they need to survive.

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Posted in * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Economy, Europe, Foreign Relations, Politics in General, Spain, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--