Spain's Bailout: Did Obama Get His Way On Aid Without Austerity

When it was announced that Spain was getting a $125 billion banking bailout, everyone thought that the European Union dodged another potential bankruptcy bullet and, with it, Spain would be on a path to getting it's fiscal house in order.  But, then, it was uncovered that Spain got that money without any commitment to austerity.  It was as if the powers to be had just given up on their austerity kick; those prior commitments that came along with previous handouts to Greece, Portugal, and Italy.  For President Obama, it was his dream come true and a put-down of German Chancellor Angela Merkel and her constant calls for bailouts with committed austerity.

To many, the Spanish bailout is just a band aid.  It does nothing to fix the underlying fiscal mess that necessitated it in the first place.  For that reason, the Spanish bailout is so typical Obama.  It's like hisa bailout of GM.  GM's biggest problem, before bankruptcy, was underfunded pension commitments; and that problem, quite frankly, still exists.  It's just been swept under the carpet and is literally a ticking time-bomb that could go off and put GM right back into bankruptcy.  Obama has to know this but, from a political standpoint, he also knows that day will probably come long after he's out of office.