Others know there is little refuge. “I’m not pulling my money out,” says Purificación Ramos, a museum employee. “Where will I put it? Today one bank goes under, and tomorrow it will be another. I can’t trust any of them.”
Mrs. Ramos is correct. A bank run is unlikely, for now, precisely because the consequences would be global. Europe does not have the money to rescue Spain, an almost-certain scenario if its financial sector implodes.
Paymaster Germany, under pressure from its European partners and other global powers, including the US and China, signaled this week that it is willing to accept a bailout limited to Spain’s banks (as opposed to the country, as was the case with Greece, Ireland, and Portugal). Spain can officially request a bailout this weekend, according to Spanish media and Reuters quoting unnamed sources today, although the government denied it had yet made a decision.