Because it was a long time since they had seen a previous bursting of a property bubble, investors found it hard to imagine it happening again.

ECONOMIST: Hot property

The bursting of the property bubble and high unemployment levels compounded the situation, forcing many economic migrants from South America and Eastern Europe to leave the country.

BBC: Europe

More worrying is the absence of obvious sources of growth after the bursting of Spain's property bubble.

ECONOMIST: Can a new government get Spain working?

Everyone has been so concerned about a property real estate bubble bursting over the last year but the steps to deal with it have worked.

FORBES: Why Corporate Governance is So Important to China

Spain, the eurozone's fourth largest economy, fell back into recession in the last quarter of 2011, the second recession since the bursting of the country's property bubble.

BBC: Spain budget imposes further austerity measures