Then, on Thursday, Spain revealed more austerity in its 2013 budget, which will likely have to be modified to include deeper cuts when over-optimistic macroeconomic growth assumptions don't materialize.

On Friday, Spain announced a 60 billion euro capital shortfall across its national banking system, but the macroeconomic assumptions used in that test are likely too optimistic as well. On top of that, more bank capital will continue to be destroyed as the Spanish housing bubble continues to deflate.

SocGen strategist Kit Juckes wrote that "all the ECB’s money won’t make recession go away and until a growth strategy is implemented by Europe’s politicians, this crisis can’t be brought to a satisfactory end."

And right now there is no growth in Spain.