And you are here why?

Holy F**k! Seriously. 7.5+%!!! Commentary is pretty redundant at this point, suffice to say that this is not the picture of a country able to borrow in the markets at reasonable rates. I guess this can can't really be kicked much further down the road...

Moody's cut Spain's bond rating - from Ba1 to Ba3 (next stop - junk !).  The reaction from the market?  The magic chart sez. it all. Note that the yield maxed not at 7%, but at 6.998 which means, technically ,  Spain is still OK :-) Just kidding - at these rates, there is no way that Spain can go to the markets...

Well, that didn't take long. The Spanish Bank bailout got announced , and the markets opened relatively well, and lasted for, well, two hours. Thats it. Two Hours! I mean, this was the Big Gun ™ ! Ok, maybe not the Big Gun ™, but certainly a Big Gun ™ . And it lasted two hours. Sigh. We're doomed, I tell you, doomed .  In David Einhorn's now infamous chart (below), the cycles are getting shorter and shorter.  They didn't even get to the Champagne Party this time... Also, it looks like now everyone is looking at Italy and (ominously) saying "Well?".  From Bloomberg Italy’s 10-year bonds reversed early gains today in the first trading after the Spanish bailout and fell for a fourth day, sending the yield up 20 basis points to 5.98 percent. Doomed...