Thursday, January 12, 2012

Any reason this sanctioned ‘extend and pretend’ won’t come to UK?

Spanish Banks Try to Build Their Way Out of Home Glut .

The drive to keep building in a housing market drowning in empty properties shows the depth of Spain's banking crisis. The country's housing bust saddled banks with not just vacant homes, but also billions of euros worth (sic) of undeveloped land. Yet rather than writing off the land as a loss and attempting to sell it, banks have been building on empty lots. Francisco Gómez, a building firm's chief executive, said he hasn't been able to sell homes, or even pay interest on theie loan, for the past three years. Instead of foreclosing, he said the bank—which he won't name—has been lending him more money to cover the interest payments, adding an extra €3 million to the total debt.

Posted by ontheotherhand @ 11:08 AM (1602 views)
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15 thoughts on “Any reason this sanctioned ‘extend and pretend’ won’t come to UK?

  • i see we have a wheat glut too, wonder if price of bread will drop lol

    also we have too much Aluminium

    in the meantime house prices are still going up in lala land

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  • mark wadsworth says:

    That’s a fantastic bit of Home-Owner-Ist logic. Don’t these people understand the concept of “sunk costs” or “marginal costing” and so on?

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  • I think what it actually shows is that they have no alternative but to prop everything up and hope for the best.If it fails,then the logic is
    ‘at least we tried’

    the alternative is unfortunately unthinkable for ‘them’

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  • taffee they will run out of ammo soon

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  • We can’t do this in the UK as we have no land ! Hence a shortage of property no supply + high demand = high prices ! Seem’s fair to me!

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  • happy, smugdog, tony, clarence, fluffy, lala

    whatever

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  • they probably figure if it goes wrong the euro zone will bail them out anyway.

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  • Mark, i was taking the p*ss, we have plenty of land, if like they say we are 2 million homes short, we have over 2000 towns & over 66 cities, you do the math, it’s not to many in each, also we only use a small amount of land for building at a guess 10% – 20%..So the whole supply & demand crap is a fallacy.. 🙂

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  • sorry thought you were taking the idiot stance like others who used to post on here

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  • May I add there is no point suddenly building 2 million houses if we do not have a population control plan.

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  • gone-to-colombia says:

    What ever happened to smugdog?

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  • he went to colombia

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  • mark wadsworth says:

    HM: “we only use a small amount of land for building at a guess 10% – 20%..So the whole supply & demand crap is a fallacy.. :)”

    Across the UK as a whole it is far less, it’s about two percent actually built on, four percent gardens and other bits and pieces, and two per cent roads and railways. Figures are a bit higher in England alone.

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  • i think we should start building a few million houses in wales rather than wind turbines,

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  • @ MW Thanks for the info, even more reason to stop this farce, i rest my case..

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