FLEETING COMFORT: Financial markets' enthusiasm for a €100 billion ($124.68 billion) plan to rescue Spain's banks quickly cooled as investors questioned the conditions of the loan package and worried that the country will need more help.
THE REACTION: Stock prices of Spanish banks soared and the Spanish government's borrowing costs sank Monday morning. But the gains eroded by the end of the day, reflecting skepticism that the financial lifeline would do much good.
THE BACKGROUND: The euro region's fourth-largest economy is in its third year of recession, unemployment is soaring and the rescue loans for Spain's banks will add to the country's debt. Investors fear the new debt will dangerously strain Spain's ability to make interest payments.