Paul Krugman reminds us that government debt is not what caused the crisis in Spain (or Ireland, or Italy): 

What happened to Spain was a housing bubble — fueled, to an important degree, by lending from German banks — that burst, taking the economy down with it. Now the country has 23.6 percent unemployment, 50.5 percent among the young.

Paul Krugman reminds us that government debt is not what caused the crisis in Spain (or Ireland, or Italy): 

What happened to Spain was a housing bubble — fueled, to an important degree, by lending from German banks — that burst, taking the economy down with it. Now the country has 23.6 percent unemployment, 50.5 percent among the young.