Friday, Apr 18, 2008
The shape of things to come
Bloomberg: Spain Approves Stimulus Package as Housing Slumps
The Spanish government approved 18 billion euros ($28 billion) of emergency tax cuts and spending to shore up an economic expansion undermined by a slumping housing market and the global credit shortage. The measures, passed by decree today and enacted immediately, will provide a 400-euro tax rebate to all workers and pensioners, part of 10 billion euros of outlays this year. The remaining 8 billion euros are earmarked for next year.
Posted by alan @ 10:36 PM (463 views) Add Comment
10 Comments
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1. it_is_going_with_a_bang said...
"The stock of unsold homes in Spain is more than 600,000"
Thats a lot for a country of 40million
"Jobless claims have jumped by more than 280,000 in the past six months and activity in services plunged in March"
That's what happens when you base an economy on building houses and inflating house prices.
Can't really see how giving away 400 Euros to everyone is going to help much.
Apart from buying votes - which is exactly what it is.
2. planning4acrash said...
If all European countries start doing this, the Euro's current strength is doomed. I think I'll be calling a Euro top soon. Has the whole world gone mad?!
3. Rental John said...
Though I am not a great fan of our current PM......let's not think that the present ubfolding mess is only a British problem - it is global. Although the Euro-zone appears to be riding the storm OK....the cracks are starting to appear.
4. jack c said...
@p4c - Has the whole world gone mad?! - sadlyyes.
5. planning4acrash said...
There is an interesting point here. Individual European countries not concerned about protecting the Euro, what if all behave this way? Out of self interest, printing money here and there. As some mentioned a while back, Europe doesn't have the sort of political integration that supports Sterling. (forgetting of course the current politicians).
6. Ccamper said...
The nutters shouldn't have bulldozed respectable peoples homes and stolen their gardens for urbanisation.
They should go to hell.
7. lvmreader said...
And from where will this money come, pray tell?
The Euro is a sham
8. lvmreader said...
@p4ac
Check my predictions from about 6 weeks ago. I called a Euro top for end of H1 2008.
My exact words were "The Euro will plummet in value as the truth about Spain, Italy and France come out"
9. hpwatcher said...
@lvmreader ''...The Euro is a sham...''
That maybe so, but Sterling is an even bigger sham. Look at what BOE is planning to do now?
With UK unsecured debt running at 1.3 trillion - more that the rest of Europe put together - what is happening in Spain is nothing compared to the UK
10. planning4acrash said...
Isn't it, secured debt at 1.2tr, unsecured at 0.12tr? Or thereabouts? Either way, far too high.
So, if Sterling is destroyed, and we move into the Euro or Amero, or whatever, do all our savings just disappear?