Meanwhile, in Europe…

Stocks were down sharply across the board Monday, fueled by fears that Spain will need a full sovereign bailout and mounting worries that Greece may leave the euro.

http://www.cnbc.com/id/48284671
Spain is too big to fail and too big to bail out.  Greece is dead and the only thing keeping it going is life support.  Nobody wants to pull the plug.
Then there is cronyism at play

Spain and Italy reinstated a short- sale ban on stocks as bank shares plunged to record lows, bond yields rose and the euro traded below its lifetime average against the dollar on concern the debt crisis is growing.

http://www.bloomberg.com/news/2012-07-23/spain-italy-ban-short-selling-of-stocks-to-slow-market-turmoil.html
You’re not allowed to bet against the bailouts.  Never mind that betting against more debt being the solution to a debt crisis is actually the smart play.