In Europe, we saw the Spanish bank bailout fall flat on its face and interest rates spike in Spain and Italy.

FORBES: Europe's Solution Isn't More Inflation

The EFSF is supposed to raise the money through selling AAA bonds guaranteed by the European Union (many of whose members are flat broke), then give the money to the Spanish government which in turn doles it out to the spendthrift banks.

FORBES: Spain: Liar, Liar, Pants On Fire