Why The Bailout Of Spain Will Fail

The Euro Zone is promising to inject 100 billion euros ($125 billion) into Spain to help Spain to rescue its failing banks. Why will this fail?

Because Spain already cannot pay its debts and as its banks desperately need rescue, Spain doesn't have the money. The Euro Zone has not disclosed the terms of its promised rescue but how can a nation that can't meet its current debts add more debt and hope to meet even bigger obligations?

Spain already has unemployment of nearly 25%, which is the equivalent of the worst unemployment the U.S. faced during the Great Depression of the 1930's. And its economy is plummeting, meaning as times grow worse, Spain will have even less money to meet its obligations.

It is time for the Euro Zone to be candid and call for a global bailout of Greece, Spain, Italy, Ireland and Portugal, while also demanding banks write-down their debts to these nations. Anything less will continue the slow motion train wreck that will collapse the Euro Zone. The Euro Zone doesn't have the money to do these bailouts and if it continues down the path it is on, it too will need a bailout. Together we can succeed, piece meal, the Euro Zone will fail.

Dick