Before the 2008 crash, Spain was running a surplus, news that too frequently comes as a surprise to austerians. But it, like many other countries, was experiencing a housing bubble. That bubble was caused by many of the same bankers who are now insisting that Spain “take its medicine.” What should happen instead is that those bankers should take their medicine, including an outright scalping on their bond holdings. The Spanish people didn’t cause this problem, and visiting unnecessary pain and poverty on Spaniards will not get Spain out of this problem. If both economics and history are any guide, it’s more likely to lead to bankers dangling from lampposts than to economic prosperity in Spain. But nobody, not even bankers, believes that bankers act in their own best long-term interests all the time, mainly because they don’t. So here we are. Well, here the Spaniards are. And if the Republicans got their way, here we would be as well.