The continuing European Death Spiral

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And now this - the European Banking Authority (EBA) has told asked the banks to cough up an extra $150 Billion in reserves by June.  Of course, there is no earthly way that the banks can actually raise that kind of capital - the capital markets are basically dead to them.
Sooo, they are pretty much going to have to borrow the money form their respective gummints - money that the aforesaid gummints don't really have.  Which means that the debt load on said gummints goes up, which means that the value of the gummint bonds goes down, which means, wait for it, the banks will need Even More Reserves.  As Andy Brough puts it so succinctly -
“We’re in a death spiral,” said Andy Brough, a fund manager at Schroders Plc in London. “As the yields on the peripheral bonds increase, value of the bonds decreases and the amount of capital the bank has to raise increases.”

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