Channel 4 News About To Do Item On Cocos

[The Masked Tulip]

Per thread title.

Edit: It is on the bank protection scheme and not deposit protection scheme.

Edited April 9, 2014 by The Masked Tulip

[The Masked Tulip]

Also a good item on the Spanish property bubble - Spain building 800,000 homes a year at the height of the bubble but only needed 200,000 a year. Properties now worth half what people paid during the boom.

Mass unemployment - Spain has 6 million unemployed but only creates 60,000 jobs per year. It will take a century to create enough jobs.

Mass emmigration by the young out of Spain.

[onlyme2]

Also a good item on the Spanish property bubble - Spain building 800,000 homes a year at the height of the bubble but only needed 200,000 a year. Properties now worth half what people paid during the boom.

Mass unemployment - Spain has 6 million unemployed but only creates 60,000 jobs per year. It will take a century to create enough jobs.

Mass emmigration by the young out of Spain.

High population growth with no pro rata requirement for additional labour. A good recipe for high unemployment, bubbles or no bubbles.

http://en.wikipedia.org/wiki/Immigration_to_Spain

Currently

Foreign population in Spain[5]

Year Population % total

1981 198,042 0.52%

1986 241,971 0.63%

1991 360,655 0.91%

1996 542,314 1.37%

1998 637,085 1.60%

2000 923,879 2.28%

2001 1,370,657 3.33%

2002 1,977,946 4.73%

2003 2,664,168 6.24%

2004 3,034,326 7.02%

2005 3,730,610 8.46%

2006 4,144,166 9.27%

2007 4,519,554 10.0%

2008 5,220,600 11.3%

2009 5,598,691 12.0%

2010 5,708,940 12.2%

2011 5,730,667 12.2%

2012 5,520,133 11.7%

According to the Spanish government, there were 5.6 million foreign residents in Spain in 2010; independent estimates put the figure 14% of total population (Red Cross, World Disasters Report 2006). According to residence permit data for 2010, around 800,000 were Romanian, 710,000 were Moroccan, 410,000 were Ecuadorian, 370,000 were British and 290,000 were Colombian. Other important foreign communities are Bolivian (4.1%), German (3.4%), Italian (3.1%), Bulgarian (2.9%), Chinese (2.6%) and Argentine (2.5%). In 2005, a regularization programme increased the legal immigrant population by 700,000 people. Since 2000 Spain has experienced high population growth as a result of immigration flows, despite a birth rate that is only half of the replacement level. This sudden and ongoing inflow of immigrants, particularly those arriving clandestinely by sea, has caused noticeable social tensions

[winkie]

Spain's building construction is like to our financial services.........they do what they know best to make the best money, the property was built for both Spanish residents, non residents and expats.........they allowed their property to fall into balance, unlike us because we failed to build enough to meet our rise in population, and overseas demand....

[terryturbojr]

Mass emmigration by the young out of Spain.

London full of Spanish (and Greeks) these last few years. Think the Italians have ask just stayed in Italy living with mum.

[Guest spp]

According to the Spanish government, there were 5.6 million foreign residents in Spain in 2010; independent estimates put the figure 14% of total population (Red Cross, World Disasters Report 2006). According to residence permit data for 2010, around 800,000 were Romanian, 710,000 were Moroccan, 410,000 were Ecuadorian, 370,000 were British and 290,000 were Colombian. Other important foreign communities are Bolivian (4.1%), German (3.4%), Italian (3.1%), Bulgarian (2.9%), Chinese (2.6%) and Argentine (2.5%). In 2005, a regularization programme increased the legal immigrant population by 700,000 people. Since 2000 Spain has experienced high population growth as a result of immigration flows, despite a birth rate that is only half of the replacement level. This sudden and ongoing inflow of immigrants, particularly those arriving clandestinely by sea, has caused noticeable social tensions

Shocked/surprised by those stats. Would have expected retiereees to have made up most of the figures...taking spending money with them = good for the economy. The fact that 1.5 million have been Romanian/Moroccan is quite alarming. Can't see that many of those bought property there, or have been putting their retirement money/savings into the economy. You'd probably expect 90% + of them to be competing with the Spanish for low paid jobs. Wow!

A great opportunity for the Spanish people making money abroad to eventually return mortgage free though. Probably one of the best climates on the planet if you like the sun.

[crashmonitor]

Also a good item on the Spanish property bubble - Spain building 800,000 homes a year at the height of the bubble but only needed 200,000 a year. Properties now worth half what people paid during the boom.

Mass unemployment - Spain has 6 million unemployed but only creates 60,000 jobs per year. It will take a century to create enough jobs.

Mass emmigration by the young out of Spain.

It was rather good, we got the new airport in the middle of nowhere abandoned and then some God forsaken town in the North with empty new tower blocks. The locals weren't very forthcoming with the interviewer, ashamed by the fact none of them had a job. One young lady said she was heading for London as soon as she could. Yep we are seen as the Promised Land in the rest of Europe with their dysfunctional economies in meltdown.

Whether overcrowding and urbanisation is our advantage over Europe. You look at what is going on in rural Europe, property lying empty, no work, ghosts towns and airports built in the middle nowhere....and maybe you can see where our advantage lies.....pack the immigrants in and let everybody scrap it out and the economy go into overdrive.

Edited April 10, 2014 by crashmonitor

[zugzwang]

It was rather good, we got the new airport in the middle of nowhere abandoned and then some God forsaken town in the North with empty new tower blocks. The locals weren't very forthcoming with the interviewer, ashamed by the fact none of them had a job. One young lady said she was heading for London as soon as she could. Yep we are seen as the Promised Land in the rest of Europe with their dysfunctional economies in meltdown.

Whether overcrowding and urbanisation is our advantage over Europe. You look at what is going on in rural Europe, property lying empty, no work, ghosts towns and airports built in the middle nowhere....and maybe you can see where our advantage lies.....pack the immigrants in and let everybody scrap it out and the economy go into overdrive.

Except there's not enough work for the ones that are here already... and nowhere for them to live. Perhaps Osborne could run the primary deficit up to £150bn/yr again to accommodate a few more?

[crashmonitor]

Except there's not enough work for the ones that are here already... and nowhere for them to live. Perhaps Osborne could run the primary deficit up to £150bn/yr again to accommodate a few more?

Will suit the Metropolitan elite very nicely, making scarce what they already own.

[winkie]

London full of Spanish (and Greeks) these last few years. Think the Italians have ask just stayed in Italy living with mum.

I should coco.

http://www.thelocal.es/20131108/being-an-exile-is-a-state-of-mind

Edited April 10, 2014 by winkie

[Ulfar]

Back to the subject of CoCos, the report didn't explain what they are.

What it did state is they are basically ******** and made up, bit like our normal money then.

[terryturbojr]

There's nothing particularly complicated about cocos. They're basically a bond that ceases to be a bond when the bank is short on capital. They achieve this via changing to equity or, more commonly now, writing down to nothing when a capital level is reached. They have lots of other little features - non-mandatory coupons etc. - but the swap/writedown at a trigger the big one. You used to get paid a lot for the risk, but with the QE induced search for yield they're trading pretty tight now considering those features. Whilst i have little issue with the structure I wouldnt want to own them at current prices.

They're no more made up than any other financial instrument, and a lot less made up than derivatives (not that i have any issue with that).

Edited April 11, 2014 by terryturbojr