The New York Times  (here) has picked the story of Caja Castilla La Mancha. A lot of bad assets and bad lending decisions seemed to have lead to the current situation.

This is the first banking seize of Spain in the current recession. 

Also, if you are up for a $2M white castle in costa del sol, NYT has one for you. 

Nobel Price and New York Times Op-ed Columnist Paul Krugman wrote about Spain  (here) on January 19th. It does not make the news today but Spainlaw.net is still a toodler. 

 Krguman thinks Spain's own real estate bubble burst was worse than Florida's and that one of the few things Spanish goverment can do is try to reduce wages. I think wages in Spain are really low as is. 

He goes on to say that workers do not move from distressed regions to those with better prospects in Europe. I agree with Krugman on this one.  Based on my experience, regular folks in Spain do not move fetching a better job, period. 

What is your own experience about workers mobility? What's going on in your country for other people.