Debt crisis: Barack Obama demands action as leaders ponder Spanish bank rescue

US President demands European leaders act 'right now', as ministers deliberate over bail-out on Spanish banks.

World leaders demanded tough new measures by Greece to control its debt mountain as officials reported that talks on a 120 billion euro (160 billion dollar) bailout deal were nearly complete.Amid lingering fears that the debt crisis could spread, US President Barack Obama, German Chancellor Angela Merkel and the European Union called for resolute action by Greece to control spending.

George Orlwell coined the term doublethink in his classic book 1984. Doublethink is the power of holding two contradictory beliefs in one's mind simultaneously, and accepting both of them. Have you listened to the conflicted beliefs coming from Spain lately? Conflicted Beliefs

WASHINGTON (AP) — Most Americans think jarring economic problems will erupt if lawmakers fail to increase the government's borrowing limit. Yet they're torn over how or even whether to raise it, leaning toward Republican demands that any boost be accompanied by spending cuts. According to an Associated Press-GfK poll, 53 percent say that if the debt limit is not extended and the U.S. defaults, the country will face a major economic crisis. An additional 27 percent say such a crisis would be somewhat likely, while just 17 percent largely dismiss the prospects of such damage.

I am pleased to report the debt-limit charade is progressing in order, right on cue, perhaps slightly ahead of schedule. In Trillion Dollar Coin Idea Dies Sudden Death; Treasury, Fed Oppose Using Platinum Coin; Republican Strategy I proposed this seven-stage sequence of events. Politics of the Debate

In a surprise but welcome move, the ECB Shifts View on Bond Losses. The European Central Bank, in a sharp turnaround, has advocated imposing losses on holders of senior bonds issued by the most severely damaged Spanish savings banks, though finance ministers have for now rejected the approach, according to people familiar with discussions.

EU Throws Spain Two Deathlines; Spanish 10-Year Yield Tops 6.7%; ECB Rejects Madrid Ponzi Refinancing Scheme The markets are reeling in the wake of rejection of Spain's Ponzi Recapitalization Scheme by the ECB according to the Financial Times.

President Barack Obama has criticised European leaders for failing to tackle the debt crisis and has demanded "more effective, co-ordinated" fiscal policy.