Friday, Jun 15, 2007

Spanish house prices still have much further to fall

MoneyWeek: Spain rues the day it joined the euro

The numpties at the Banco de Espana must be rueing the day they joined the euro. They have three reasons for regret. The country’s housing bubble has burst, the economy is less competitive than ever and the current account deficit has mushroomed to the world's second largest.

And there’s little to nothing they can do about it. Except, of course, look on helplessly...

Posted by mary @ 02:51 PM (127 views) Add Comment

4 Comments

1. japanese uncle said...

Another strong evidence that unfication of currncies without regard to cultural difference between nations would never work. Mobility of labour which was said to be the premises of this unification can be true only among the multi-lingual elites, but not for the vast majority of workforce. How can you expect an average Spanish worker properly functioning in, say, Denmark? Interest rates and tax rates should be locally decided, rather than by the pen-pushers in Brussel/Basel.

Friday, June 15, 2007 05:23PM Report Comment
 

2. enuii said...

The euro will bring normal, average people across europe up or down to the lowest common denominator, if and when the citizens of the UK are forced into it I dread to think of the result because for the vast majority of the hard working wage slaves in this country the only way will be down!

Friday, June 15, 2007 05:35PM Report Comment
 

3. japanese uncle said...

enuii;

Just physically moving into other country, and 'properly functioning in that country' is way different. Having said that, indeed we have quite a few workers (whether working or not) from East European EU member states, some sleeping in public lavatories, which is a problem, I must admit.

Friday, June 15, 2007 06:13PM Report Comment
 

4. Mark Wadsworth said...

I don't understant the final comment, how can Spain "bite its lip and deflate", they're in teh Euro are they not?

Saturday, June 16, 2007 11:26AM Report Comment
 

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