Tuesday, January 20, 2009

THE PAIN IN SPAIN isn't hard to explain, writes Paul Krugman:
Spain was basically Florida, with a housing bubble inflated by both resident and holiday purchases, and now the bubble has burst.

But Spain is in worse shape than Florida, for two reasons — reasons familiar to anyone who was involved in the great debate about whether the euro was a good idea.
Read the rest.

UPDATE. More from Forbes and the AP.