WSJ Blogs  Real-time commentary and analysis from The Wall
Street Journal The Euro Crisis Real-time updates and analysis of
Europe's debt crisis  Why the LTRO Can’t Save Europe
Here’s more of what BCA has to say on sovereigns:  The potential
negative implications for Portugal and for the fate of the CDS
market related to the Greek negotiations will continue to
threaten the European markets. The bigger questions are whether
the Italian government is solvent and whether Spanish banks can
raise enough capital to cope with further massive real estate-
related writedowns (which are long overdue and have begun for
some of the banks) and to cover their €75 billion of exposure to
Portugal. The Spanish government has so far rejected the idea of
a “bad bank” to shelter the losses, although the Rajoy
administration mentioned the idea during its campaign. A bank
bailout would strain Spain’s spreads given that Spain is already
struggling to get its deficit under control and its debt load
continues to expand.  As for