27.2% unemployment (Spain up Shit Creek, no paddle)

[Guardsman Bass]

I occasionally get the impression that the current debate about the crisis often ends up revolving around solutions that will not realistically speaking ever get implemented. As with the debate about environmental disaster and climate change. Stop saying what should be done and tell me what, realistically speaking, is the most likely end of the current trend.

Most likely end is that Spanish banks get recapitalized, Spanish interest rates eventually start to fall, and they get a period of slow growth (speeding up when construction picks up again, because a lot of people do want to live in Spain). It will be slower growth than if Spain could pursue a more inflationary monetary policy, but it will be growth.