Merkel: Spain crisis result of property bubble from MarketWatch.com - MarketPulse LONDON (MarketWatch)-- German Chancellor Angela Merkel said on Tuesday that the debt crisis in Spain was a result of "the Spanish property bubble of the last 10 years" and not simply about macroeconomic factors, according to a Reuters report. "It was right for Spain to ask for help recapitalizing its banks," Merkel said. The European banking Authority, she added, had failed to properly diagnose the problems of the Spanish banks, according to the Reuters report. Reuters reported that Merkel once again dismissed calls for jointly-issued euro-zone bonds. Bond yields on 10-year Spanish government debt breached euro-era highs on Tuesday.