As the price of Spanish government debt plummets, that generates losses for Spain's banks, which hold around 250bn euros of the country's government bonds, equivalent to a third of central government debt.
These best-in-breed stocks have average earnings yields of 8 percent, which is equivalent to over four times the 10-year Treasury yield, yet people are fleeing stocks for bonds, which have the lowest short-term interest rates since the 1940s.