28 Banks Downgraded, Yields Double

It's not raining, it's pouring in Europe. This was all expected, in spite of the flowery stock market on this first half of the year,

Moody's downgraded 28 Spanish banks yesterday, just when Spain formally requested loans to bail out its banking sector. Moody's said the downgrades were driven by the Spanish government's "reduced creditworthiness", which impacts its ability to bail out the country's banks.

They also said that the banks will sustain further losses in Spain's moribund real estate market.

The auction of Spanish bills resulted in yields that were more than double the previous auction.