Spanish bank rescue won't save Spain's economy

According to today's Wall Street Journal, Spain's acquiescence to a bailout of as much as €100 billion ($125 billion) for its banks is a prelude to a much bigger question: Will Spain need a bailout for itself? The Spanish economy is almost five times the size of the Greek economy and Spanish unemployment is around 24% (and more like 50% among younger people). Young Spaniards complain that even a university degree leaves no guarantee of finding work. 

http://blogs.wsj.com/eurocrisis/2012/06/11/spanish-bank-rescue-wont-save-spains-economy/

http://online.wsj.com/article/SB10001424052702303444204577458553768029114.html?mod=ITP_pageone_0 

This is what Paul Krugman (New York Times) is saying about the Spanish bailout:

June 11, 2012, 8:41 am Things You Really Don’t Want To See The Morning After A Bailout  

"It’s a commonplace that the half-life of euro rescue plans has been steadily falling — that is, the time between the initial euphoria over the latest bailout loan or whatever and the realization that the fundamentals have not been addressed keeps getting shorter. Apparently that half-life is now down to a few hours."

This makes me think of an article I saw earlier this year about Spain's Lost Generation:

http://www.telegraph.co.uk/news/worldnews/europe/spain/9044897/Spains-lost-generation-youth-unemployment-surges-above-50-per-cent.html

Photo: AFP/GETTY