Roubini Says Spain Risks Bank Run Without More European Support - Bloomberg: "“Spain is too big to fail but also too big to be bailed out,” Roubini said today in a Bloomberg Television interview on “Surveillance Midday” with Tom Keene. He said the existing resources for bailouts are too small “to backstop the Spanish banks and the sovereign if there is going to be a run on them.”
European Union leaders will meet this week amid discord about how to stem a debt crisis that’s caused Greece and Ireland to accept bailouts.
“Unless the Europeans this weekend are going to decide to increase the envelope of those official resources, in the next few weeks you’re going to see a worsening of those spreads for Spain,” Roubini said, referring to the extra yield investors would demand to hold the country’s debt over that of Germany."
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