Explaining Southern California's economy

Eurozone crisis: It's baaaccckkk!

Men look at the IBEX-35 index curve on A

DOMINIQUE FAGET/AFP/Getty Images

Men look at the IBEX-35 index curve on April 23, 2012 at Madrid's stock exchange. Top shares on the Madrid stock exchange slumped 3.24 percent in early trade, hammered by concerns over Spanish sovereign debt and the French presidential elections.

Well, it was only a matter of time before the zombie plague that is the European debt crisis once again lurched toward global markets, hungry for brains....brains...brains... I mean bailouts...bailouts...bailouts.... That's what Spain is now telegraphing, as the yield on the country's 10-year bond edged closer to the critical 7-percent mark, the point at which a bailout by European banking authorities would be necessary. 

Spain's woes are very different from Greece's. Spain has a banking crisis that was brought on by a property boom. Greece borrowed to build a welfare state. For this reason, it's critically important that Spain's crisis be contained, because other banks have exposure to Spanish banks. Banks outside Spain. 

Here's some insight from (of all places) Bermuda's Royal Gazette:

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