With the world nearly done watching Washington, investors are beginning to remember that major trouble is going on in Europe.
Just take a look at Spain.
10-year bond to bund spreads already reached 404 points in early trading, and are still near record highs despite levelling off in the last few hours. The Bolsa de Madrid has fallen 9,300 points since its open, or 1.3%.
Zapatero is returning from vacation to handle the situation.
El Mundo is starting to talk about a bailout, citing experts who say that “in the medium term, these levels are unsustainable.”
That might just be what’s happening. Check out this chart of Spanish 10-year bond yields over the past month: