That $125 billion bailout that was supposed to help stabilize Spain is just accelerating the downward spiral. The money, which went to the Spanish government so they could bail out their banks, rather than directly to the banks, of course adds to Spain’s overall debt.
So Moody’s has now downgraded Spanish debt to one step above junk. Spain’s cost of borrowing, which the bailout was supposed to bring down, has jumped to 6.96% for the ten-year bond.
As that rate rises, so do Mitt’s chances of winning. The pain in Spain generates cheers, not tears, in Boston. They’re crying in the White House and Chicago, but for themselves, not the Spaniards.