Wednesday, Jul 16, 2008

Spain is now spiralling into the worst crisis since the Franco dictatorship

The Telegraph: European recession looms as Spain crumbles

The eurozone is tipping into a deeper downturn than America itself despite the tremors in the US mortgage industry, and may already be in full recession for the first time since the launch of the single currency.

Posted by sold 2 rent 1 @ 01:12 PM (373 views) Add Comment

5 Comments

1. Whostolemyendowment said...

The weaker economies in the Eurozone will drag down the stonger central countries......will they allow this to happen? I think not.....so will we see a two tier Eurozone?

The rise in the Euro against the £ and US$ is not all about a stronger Eurozone economy.....but all to do with speculation by hedge funds and investment banks.......the time for correction is nigh.

Wednesday, July 16, 2008 01:18PM Report Comment
 

2. mark said...

only 10% was housing, OMG what is our country? 30% housing? 40%?50%? plus the stock market, we are doomed....

Wednesday, July 16, 2008 04:32PM Report Comment
 

3. plato said...

mark............

Correct! Europe has it's own problems with each member on the continent facing growth problems. The UK however is leveraged right over the top of it's head. We decimated our manufacturing base and put nothing aside for an economic downturn.
Spain has relied too heavily on housing over the last few years believing that house prices would never reverse. The increase in real wealth enabled many there to get on the property ladder. How much they must regret that now.
Ours has been based on imaginary wealth and unless you got in and then out over the last few years at the right time, you'll be lucky to still own a property in a couple of years time.
I am still strongly convinced the euro will decline substantially over the next year. Too much reliance on the Father Land. Who is going to be buying great big German cars? Saying that I'm sure they will adapt quickly to the market, but the damage will already have been done.
There is certainly no point in enlarging the EEC with desperate members and the real reason for this is easy access to cheap (near slave) labour without doubt.

Wednesday, July 16, 2008 06:10PM Report Comment
 

4. it_is_going_with_a_bang said...

"house prices had already fallen 15pc since September.
Unemployment has risen by 425,000 over the past year, reaching 9.9pc.
In Castilla-La Mancha - Don Quixote's region - some 69pc of all houses built over the past three years are still unsold"

Terrible stats. Especially when you realize its not in full swing yet.

Wednesday, July 16, 2008 08:56PM Report Comment
 

5. enuii said...

I suspect that many UK Ex-Pats will start to feel very insecure in Spain soon when the levels of crime rocket. Most houses were already fitted with bars or shutters over the windows and steel security gates in front of the doors when Spain's construction boom was in full swing. The English will be seen as a legitimate soft target when it comes to burglary and general theft.

Wednesday, July 16, 2008 11:00PM Report Comment
 

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