One point to nuance my largely apocalyptic comments so far on the Euro crisis - I've learnt that huge swathes of Southern European debt are held by French and German banks. This suggests that when push comes to shove, the Germans will bail out whatever needs bailing out, even if this means stoking inflation (as it might, given the huge sums involved).
Sometimes you just can't win. Spain needed to show some readiness to take the pain to impress the markets, and guess what? The ratings people decide the pain will be painful enough to depress the economy and make Spanish debt even less attractive.