It's broke. It suspended social service payments. Hospitals and other medical priorities go begging. Earlier budgets were slashed sharply.
Other Spanish regions have similar problems. Crisis grips the country. Madrid is insolvent. So are major banks. They need hundreds of billions of euros to meet liquidity needs. What's possible under ideal conditions isn't enough.
Massive capital outflows highlight the problem. On July 31, new Spanish central bank figures showed May amounts quadrupled year-over-year.
Since summer 2011, the equivalent of about one-fourth of Spain's GDP sought safer havens elsewhere. It sounds like an obituary - a run on the entire country.
It's bad and worsening. The ECB and Eurozone countries haven't enough firepower to address it. Italy, Greece, and other troubled countries need help. Banks and sovereigns need massive amounts.
EFSF funds are capped. They're far below needs. If ESM is established, Spain and Italy must provide 30% of its funding, Germany another 30%.
How can troubled countries contribute anything? What's ongoing reads like a Shakespearian tragedy. Bad endings are easy to predict. SNAFU defines them: situation normal all f..ked up.
Bazooka economic promises are hollow. Eurozone dissolution is inevitable. Only its timing is unknown. Imagine how much worse things will be when day of reckoning time arrives.