The Wall Street Journal had this entertaining combination on their sidebar today:
As a casual observer it is easy to see why there would be some short-term excitement, even though this is hardly good news for the economy. The crash of the eurozone was just pushed off for a while, as its failing health becomes more serious. Stocks will rise as the immediate result of this transfer is good news for the Spanish economy, and for the wider EU, but investors are rightly nervous – there is no good news for the longer term. There are two reasons why the Spanish loan is good news for the short-term. First, the loan will carry Spain for a while, forestalling a failure of its banking system (and probably, of its government), which is definitely good news for now. More importantly, this loan was arranged quickly and with minimal fuss. Spain and the EU worked it out quietly, unlike the Greek bailouts which were accompanied by a lot of difficult bargaining and political issues. Many people seem to think the threat to the EU and the euro is caused by its bickering on terms of its loans and bailouts, and not because it is a flawed system. If only everyone could work nicely together, and give people money when they need it, the system would be entirely stable. (Isn’t that the logical basis for all socialism?) And now with Spain the EU has shown they can do it, and arrange a loan quickly and cleanly. This is truly very good news for anyone who supports a socialist Europe.