$120 Billion bailout of Spain’s troubled banks will temporarily recapitalize Spanish banks. But the bailout will trigger negative reactions.
Austerity measures will spur protests from the citizens which will provide alot of pressure on the government. The euro will sink in value because of the combined effect of the bailout and the austerity measures.
The stress on the economy of Spain will spread to Italy and in my opinion lead to the breakup of the euro zone once Germany realizes that by continuing to bailout these failing economies they are just dooming there own.
In the end the wheels will come off and a great financial destruction will sweep over much of the world. A strong Germany can help lead Europe back to strength by staying strong and renouncing socialism once and for all.