El riesgo del sector público es muy superior (marca máximos) al riesgo del sector privado.
Check out the CDS spread, the market is now more worried about a Spanish government default than a default from either Banco Santander or a major telecom company.
And yet we are told there are no market signals that European governments are spending too much. We are also told that the Spanish government can do OK with its halfhearted austerity plan or maybe they should even be spending more. Those discussions usually stop at the mention of a single interest rate or perhaps an unemployment figure.
For the pointer I thank Andres A.