it comes from douglas rediker. he represented the u.s. on the executive board of the i.m.f. from 2010 to the beginning of this year, he's now a senior fellow at the new america foundation. and jacob kirkegaard, who closely watches european matters for the peterson institute for international economics. jacob kierkegaard, let me start with you. all of this stems from the collapse of the real estate bubble in spain and the banks holding the bag. >> basically. i mean what you have on a national scale in spain is essentially what we've seen in some of the regions of the united states, in nevada, south florida, south california, where essentially you have an enormous increase in housing prices and a subsequent bust. and the bust breaks the back of the banks. that needs to be a bailout. unfortunately, the spanish government has been in denial about the true state of its banks for pretty much since the crisis began. but you could say that finally they have run out of options so what happened over the weekend was really the end of denial. >> woodruff: douglas rediker, what caused th