The latest news in the financial chaos of Europe was the prop up of Spain’s wobbling banks. But its leaders still face a problem that plagued the continent’s increasingly vulnerable financial institutions. The problem is a long standing addiction to the borrowed money that provides the day-to-day financing of its operations. This disease afflicts banking system elsewhere including that of Italy, whose fragile economy is even arguably worse than that of Spain and whose banks rely heavily on borrowed money to get by. In Spain’s case, the capital flight into safer harbors, combined with a portfolio of real estate loans that has ultimately deteriorated with the economy, led to the collapse of Bankia, the mortgage lender whose failure set in motion the country’s current banking crisis.

Hopes were uplifted that Europe’s latest solution could resolve the problem affecting Spain. The global financial markets were once again treading along a thin line, with analysts welcoming the decision but cautiously looking at the Greek elections which could inflame the markets once again. Global analysts worry that the highly indebted banks in other weak countries like Italy might face constraints similar to those of Spain in the months ahead.

Also enveloping the chaotic environment are the losses that would accumulate if Greece were to leave the euro currency union, throwing most of their euro-denominated loans into a state of default. The French and German banks would be hurt the most since they have been longstanding lenders to Greece.

The stop-gap arrangement which provided relief to the wobbling banks in Spain is arguably a temporary solution and an even larger problem is brewing on the shores of Europe by the look of things. Next is certainly what-for this debt ridden continent!