Markets Relieved at Spain Bailout Deal; Financial World Still Worried Markets Relieved at Spain Bailout Deal, Financial World Still Worried - The Daily Beast EXCERPTS: (With all of the following being said, the writer still manages to provide some optimism.) Over the weekend, the Spanish government bowed to the necessity of seeking a bailout for its banking system. The amount was large: $125 billion in loans from the European Union to stave off the collapse of Spanish banks. The result was greeted with relief by financial markets around the world, with stocks rising, bond prices falling, and the outflows from southern European banks for the moment stanched. ........ Nonetheless, the commentary from the financial world was a resounding, “Yes, but ...” The financial world has become almost universally convinced that “the Big One” is coming. What precisely that will entail is not exactly clear, but the consensus suggests that it will make whatever happened in the months after the collapse of Lehman Brothers in the fall of 2008 seem mild by comparison. It will be a global synchronous implosion of the fiat money system of paper currencies unchecked by impotent central banks and governments unable to coordinate policy quickly enough stave off collapse. Greece is seen as a possible trigger, the domino that will end up hindering Spain and then Italy from funding their debts, leading to the dissolution of the euro and generating global waves that imperil U.S. money-market funds and Asian stability. ........ China may simultaneously suffer the hard economic landing that so many have feared for years, with real estate truly crashing, growth halting, and instability following. And yes, the U.S. government may approach the “fiscal cliff” in the fall and fail to pass new tax and spending laws, thereby triggering downgrades and economic contraction.