Spanish Banking Troubles Keep Markets on Edge

By Robert Broens: During last week, problems in Spain have resurfaced again amidst a string of signs indicating that the Eurozone's fourth largest economy comes under pressure once again. Record ECB Lending

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

It's time for another roundup on Spain. Every day is time for another roundup on Spain. Today's report is on bad loans, and complete foolishness at Bankia buying its own shares hoping to stabilize its price. Spanish Bad-Loans Ratio Hits 8.37 Percent The Wall Street Journal reports Spanish Bad-Loans Ratio Hits 17-Year High

Dr. Duru submits: The stock market has already started cooling off from overbought conditions, but the weakening euro, increasing bond yields, and widening spreads have markets on edge yet again.

  Anyone who wants to get an inside look at both the European banking system and the politicians in charge of fixing it need to only look at Spain’s Bankia. Bankia was formed in December 2010 by merging seven totally bankrupt Spanish cajas (regional banks that were unregulated). The bank was heralded as a success story and an indication that European Governments could manage the risks in their banking systems.

Nearly five years into the European debt crisis, the European Union has finally begun addressing the financial challenge it faces in both word and deed.