AUDIO: Spain's government 'reacting late'

Inquiring minds are watching the implosion of Spanish bonds. Spain 10-Year Government Bonds Spain 2-Year Government Bonds

Reuters reports Eurozone Unemployment Reaches Near 15-Year High Unemployment in the euro zone reached its highest level in almost 15 years in February, with more than 17 million people out of work, and economists said they expected job office queues to grow even longer later this year.

The implosion in Spanish banks continues. On Wednesday, Spain nationalized BFA, the 8th nationalization since the start of the crisis. After sinking 3 billion into CatalunyaCaixa, Spain tried to privatize the mess but there were no offers at zero euros. Clearly CatalunyaCaixa bank is worth less than zero. Meanwhile Der Spiegel reports "Bundesbank has no idea of what is happening in Spanish banks". Mish readers do. The Spanish banking system is without a doubt bankrupt. Let's take a look at half a dozen articles courtesy of Google Translate.

Good and bad news came out of the eurozone Thursday morning as Spanish unemployment rose more to the highest in at least 37 years, but Britain’s economy dodged a return to recession and grew faster than expected in the first three months of this year. Spanish unemployment rose more than economists forecast in the first quarter as efforts to tackle the European Union’s biggest budget deficit crimped economic growth.

There are signs that investors are already worrying about Spain leaving the euro, as banks there are seeing money leave in large quantities. Pedro Schwartz, economics professor at San Pablo University in Madrid, gives his assessment on the risk of a Spanish bank run.

After insisting no bailouts would be needed, Spain to spend billions on bank rescue Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender.

Pedro Schwartz, professor of economics at San Pablo University in Madrid, explains that "there doesn't seem to be a plan" and why Spanish people are "all very worried" about the country's economic prospects.