The Greatest Depression Takes Hold - Part 2 Europe

Looks like things went from bad to significantly worse in a heartbeat.

From Zero Hedge -

It was only yesterday that Britain's societies of accountants and economists disturbed 5 o'clock tea, saying that - according to their calculations - the Empire's public net debts of £2 Trillion were more than double the official figure.

This was a bad guess. It is £4 Trillion or again double that overnight, at least according to this story in the Independent:

Spain -

The just completed auction of Spanish 2025 Obligacions for just under €3 billion, came at a 5.116% yield, a substantially worse level than the last auction as of April 22, which was placed at 4.434%. 

Germany, Spain, Greece and Portugal -

Barclays analyst Jeffrey Meli has issued a report "European bank stress tests: A preview" in which he estimates that if properly executed, the Stress Test, whose results are to be announced on July 23, will require an infusion of €85 billion to replenish capital levels. Specifically, quantifying the amount of capital needed would include €36 billion for Spanish cajas, a number far greater than expected to date, €34 billion for the German landesbanks, €8.6 billion for Greek banks and €6 billion for Portuguese banks.

The Real Effect
Just a real quick recap on the preceding information - Britain is four times as broke as anyone thought, Spain is kicking the can down the road wishfully hoping the cost of debt gets cheaper, and European banks are just as insolvent as ever. Once again, how can this go wrong?