More Spain parallels

I've mentioned before that Spain might be the best approximation for the economic model that the Obama Administration is attempting to implement. Here are some more similarities from The Economist:

Mr Zapatero seems bent on spending his way out of trouble. The budget deficit is heading for 12% of GDP. Fallout from the housing bust has forced him to set up a €99 billion ($138 billion) bank-rescue fund. The banks, especially the savings banks, are sitting on a pile of bad loans.

Meanwhile we are now finding out that the U.S. budget deficit hit $1.3 trillion in July, which places it at 9.4% of GDP with two months left in the fiscal year to go. On a GDP basis, meanwhile, Spain's bank rescue is even larger than the $700 billion package urged by President Bush and the presence of "toxic assets" is well established. Additionally by attempting to spend his way out of Spain's current predicament it seems that Zapatero shares the same economic philosophy as Joe Biden.