1: Same as all Eurozone states, the nature of the Euro is that it turns all debt into external (foreign denominated) debt.
In other words, you can borrow it but you can’t print it. External debt (at much higher levels) was a major cause of the Icelandic situation.
2: The poor regulation of European consumer banks in general (and Spain in particular) mean that this kind of silliness will continue.
3: A really sensible solution (which EU and US are blissfully immune from) like declaring all residential trust deeds non-recourse remains elusive while all of these silly pieces (and special business interests) are in play.
