Chart of the Day: Spain Is Doomed

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The EU bailout of Spain’s banks is a mere four days old and investors have now completed the raspberry they gave it on its first day. Yields on Spanish bonds shot up not just past 6 percent, which happened within hours of markets opening on Monday, but have now touched 7 percent, closing today at 6.92 percent. Clearly, the end is near. But that’s not all! Despite today’s news, Germany says it’s had enough:

The German chancellor warned that there were no “miracle solutions” to the eurozone crisis, even as the yields on benchmark Spanish 10-year bonds climbed above 7 per cent, a level seen as unsustainable by analysts.

…Underscoring how the European crisis is causing contagion in some of the continent’s largest economies, Italy’s borrowing costs jumped sharply at an auction of €4.5bn of bonds.

…German policymakers have argued that even Europe’s leading economy is not capable of assuming responsibility for the debts of all its partners. Instead they are seeking negotiations towards a “fiscal union” that would bind the members’ budgets closer together.

Remember that 11th-hour rescue I was talking about last week? Well, Europe’s come-to-Jesus moment is now looking terrifyingly imminent. Hopefully, Angela Merkel’s tough talk is aimed mainly at the Greeks, who hold another round of elections this weekend, and will soften up next week. If not, who knows? The clock is very definitely ticking away.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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