Joseph Stiglitz: Spain Bank Bailout "Not Going To Work"

Cropped picture of Joseph Stiglitz, U.S. economist. (Photo credit: Wikipedia)

The economic situation of Spain is deteriorating with each passing day. Stock Tips could meet up close, the difficult negotiations that the Spanish government officials held with members of the Eurozone. The objective was to obtain economic aid to Spanish banks. However, Europe's plan to lend money to Spain to heal some of its banks may not work because the government and the country's lenders will in effect be propping each other up, Nobel Prize-winning economist Joseph Stiglitz said.

"The system ... is the Spanish government bails out Spanish banks, and Spanish banks bail out the Spanish government," Stiglitz said in an interview.The plan to lend Spain up to 100 billion euros ($125 billion), agreed on Saturday by euro zone finance ministers, was bigger than most estimates of the needs of Spanish banks that have been hit by the bursting of a real estate bubble, recession and mass unemployment... Continue to read.

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