Spain's Banking Mess

Just as the attention started to turn to the crisis in Greece, Spain's main banks explained that their debt is increasing rapidly and that things are not looking good for the economy of Spain. They also stated that the cause of the debt is not totally due to loans in other countries, it is due to the decrease of land prices, decrease of home prices, and inflation. For awhile the banks believed that the decreased numbers were just the normal cycle of the economy and that they would rise soon, but now they are implying that they will get worse before they get better. The main source of the banks debt can be found in loans in real estate and construction loans. It is interesting that Zapatero called early elections because I wonder if a new party in power can really clean up the economy and pull Spain out of the crisis.

http://www.nytimes.com/2011/09/23/business/spains-banking-mess.html?pagewanted=1&ref=spain