The International Monetary Fund, that paragon of fiscal virtue, thinks that Spain may be all but bankrupt. Here’s the link–96 pages of dense bureaucratese in PDF format. This fellow has it in considerably simpler terms.
If I lived in Spain or had any money in a Spanish bank, I’d be looking for other arrangements. This is one to watch carefully. While the Cypriots were pretty pissed, it seems they’ve knuckled under for the most part. I suspect the Spanish will not be as easily handled.