By Simone Foxman

Spain has caught the attention of euro crisis observers recently, with borrowing costs rising and the IBEX 35 hitting a three-year low.

And for good reason: a housing bubble broken by the financial crisis has ravaged the banking system and spread into the greater economy. Without the help of Spain-specific monetary policy — and amid more and more rounds of austerity measures —it appears that these problems will only grow worse in the future.

While Spain is not insolvent, the Portuguese default analysts are already expecting could generate a firestorm that would topple Spain’s banks and leave the country reeling.

Click to see 10 ominous facts about Spain > [4]

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