Spain Bails Out CajaSur Savings Bank: More Trouble Coming for Euro?

The trouble of European countries dont seem to go away so soon. Till recently it was Greece, which had Economical Problems and today, the its the time for Spain.
As per the news, the Spanish Central bank is on its way to save the regional Spanish Bank named CajaSur with a big amount - 500 million Euros, so that it keeps itself afloat.

Now although it is just the second such instance in Spain where a kind of bailout is witnessed (first one was the House Market Bubble Burst two years back). But the fact is that problem exists and that's why the bailout has to happen.

We cannot keep our eyes closed to such incidents, as a major currency EURO is going to get impacted because of these developments on the European Economic Front. It was just a few years back when everyone was going great guns citing examples of European countries, mentioning how smart move is the formation of EU, with one single currency. The benefits time seems to have gone away, its time for some setbacks.
ALready we are seeing a lot of turmoiol in the Forex Markets with respect to Euro going down against the dollar. All courtesy of Greece, a country which now the so called experts believe that shouldn't have been part of EU, given its past record. As the dominion effect comes in, the Euro currency is set to take a hit severely.

Let's not forget that the House market bubble burst started from US two years back. It went on to move to Europe. At that time, Europe appeared to be stable and infact, the Euro started gaining solid grounds compared to the USD. People even started mentioning that Euro will soon outperform USD in big magnitude. Exporters and economies of scale started hedgin themselves by getting into Euro specific contracts rather then USD contracts. They even bought gold for the same reason. However, today things are looking different.

The Dollar is back on track, the Euro is taking a hit. What appaered to be the benefits of the combined currency of European region, are now appearning to be problems. Just one single country within the 25 member strong EU region can spark a big problem and that problem is spreading fast. It has global impact.

Atleast the Spanish Central Bank should be given full credit for being on top of things by taking preventive measures. It is suspeted that the Spain banks are having big trouble ahead, as the estimated amount of mortgage losses are around 300 billion Euros. That's not a small no. of a country like Spain. Overall, it appears that US is a still a better destination for investment than Europe