Let’s continue from the last post. As you can see here, the Spanish banks are borrowing about $400bn. The flight of foreign capital has left the Spanish and the rest of the PIGS with funding issues for all of its National Accounts. A country with a trade deficit must rely on foreign capital; if it cannot get it through legitimate market sources, then it must rely on an external bailout. No matter what acronym they call these banks loans, they are a bailout.