Roubini’s Das: Spain Needs a Bailout ‘Sooner or Later’

In what may become a historic "Emperor Has No Clothes" moment, the euro, stocks, oil, and European government bonds all quickly reversed course following initial euphoria of a Spanish bank bailout sure to do more harm than good. For details of the bailout please see Rajoy Proclaims "Victory", Says It's Not a Bailout "It's a Credit Line"; Existing Bondholders Subordinated S&P 500 Futures 5-Minute Chart

In the wake of a huge market reaction on Friday, it's interesting to see how the headlines read other places, especially Spain. Here is one such viewpoint by El Confidencial: Government 'sacrificed' Bank of Spain in Exchange for Financial Sector Bailout

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.

Insider Monkey submits: Nouriel Roubini has been one of the permabears predicting doom in this market for most of the past 7 to 8 years. His popularity skyrocketed with the onset of the financial crisis.

10-Year Spanish Government Bond Yield Official Denials in Spain Escalate

In the too stupid to make up category, Rajoy defends ‘victory’ for EU credibility Mariano Rajoy, the embattled Spanish prime minister, has defended the eurozone’s €100bn bailout for Spanish banks as a victory for European credibility.

A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so. Yahoo! Finance reports Spanish bailout could reach 100 billion euros A bailout for Spain's teetering banks, once requested by Madrid, could amount to as much as 100 billion euros, two senior EU sources told Reuters on Saturday.

In the wake of Bankia bailouts to the tune of €19 billion, the second bailout in two weeks, yields of Spanish debt are soaring. Spread to German Bonds Hits 5.05 Percentage Points