Pigs in muck – The FT Article which shocked spanish media

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This topic contains 16 replies, has 9 voices, and was last updated by Profile photo of Paul Paul 8 years, 3 months ago.

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  • #54280
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    Anonymous
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  • #85938
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    Anonymous
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    Well, as the article is for subscribers only, perhaps you could copy and paste the original FT article here

  • #85939
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    Anonymous
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    The El Mundo summary says that the European ‘PIGS’ (Portugal, Italy, Greece, Spain) would now normally have to devalue… if only they could. Then has a go against the euro.

  • #85941
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    Anonymous
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    PIGS in Muck
    Financial Times article
    1/9/08

    Exciting countries get exciting acronyms, at least in financial circles. Fast-growing Brazil, Russia, India and China, for example, are called Brics, the very initials implying solid growth. Other countries are less fortunate. Take Portugal, Italy, Greece and Spain, sometimes described as the Pigs. It is a pejorative moniker but one with much truth.

    Eight years ago, Pigs really did fly. Their economies soared after joining the eurozone. Interest rates fell to historical lows – and were often negative in real terms. A credit boom followed, just as night follows day. Wages rose, debt levels ballooned, as did house prices and consumption. Now the Pigs are falling back to earth.

    How far they might drop can be seen in their trade figures. While the eurozone is broadly in balance, at the end of 2007 Spain and Portugal had current account deficits equivalent to 10 per cent of GDP. Greece’s, meanwhile, was a whopping 14 per cent while Italy’s deficit was relatively respectable at about 3 per cent.

    The usual response to a yawning current account deficit is a stiff devaluation. But the Pigs are members of the euro, so that route is closed.

    Το άρθρο συνεχίζεται παρακάτω




    The next alternative is simply to carry on and somehow finance the deficit. But that is increasingly hard to do in these credit-chastened times. Indeed, Spain may have a particular problem. In the past, its banks – particularly the unlisted cajas – have used low-quality, asset-backed collateral to raise cheap funds from the European Central Bank. But the ECB plans to tighten its lending rules.

    That leaves the last and most painful solution. Competitiveness can be restored through a drop in real wages. In other words, a deep recession. The most dramatic sign of this can be seen in Spain where the unemployment rate rose by almost a whole percentage point in the second quarter.

    Britain, facing similar problems in the early 1990s when it was shackled to Europe’s exchange rate mechanism, withdrew sterling from the ERM and the devaluation saved its sausage. Some now wonder if the Pigs, as part of the euro, risk turning into bacon.

  • #85959
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    Anonymous
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    Why did it shock Spanish media ??????.

  • #85960
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    Anonymous
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    Cause someone has called us pigs taking a bath in our own misery. That is sufficient to shock everyone.

    Some terms can sound a bit agressive.

    But all that is told is true not matter Zapatero telling that all will be ok in a some months…

    I think spaniards should take information from foreign media in order to take a clear picture of what is working in their own country despite reading some almost offensive articles like this.

  • #85965
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    katy
    Spectator

    Local Spanish I speak to here think of a “blip” and everything will be fine soon 😯 There are a few articles saying that people are spending less, (estimated takings in chiringuitos are down 25% this summer). However, the serious problems are never aired in the local newspapers.

    Probably better though than in the UK when the Chancellor, the bank of England and all the other great and good delight in giving statements to the media which paint the situation worse than it is.

  • #85967
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    Anonymous
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    Peterpara, Spaniards can be very sensative when suits them. The ill reputation that Spain has got from its corruption. incompetence, theft etc is what the Spaniard should be sensitive & do something about it.

    Besides, what wrong with Jamon Serrano & Jabugo, they are held in very high esteem by the Spaniards !!!!!!!.

  • #85990
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    Anonymous
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    Spanish Media Association express concern about the FT Article:

    http://www.eleconomista.es/economia/noticias/735297/09/08/Los-directores-de-comunicacion-espanoles-consideran-el-articulo-del-FT-una-broma-de-mal-gusto.html

    They say that FT article was despective and denigratory. The title was a bad joy of words and a joke of very bad taste.

    They state that Spain is the eight economy of the world

    😯 and those expats who live in Spain dont live in the muck.

    Opinions welcomed!

  • #85991
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    Anonymous
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    Peter my comments above still aply.

  • #85996
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    mike
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    @peterparra wrote:

    They say that FT article was despective and denigratory. The title was a bad joy of words and a joke of very bad taste.

    They’re ignoring the problem and concentrating on the slur, probably intentionally.

    @peterparra wrote:

    They state that Spain is the eight economy of the world

    Not for long though. That’s the point, because they are in a monetary union they can’t devalue their currency to generate economic activity so they are in “la mugre”.

    @peterparra wrote:

    😯 and those expats who live in Spain dont live in the muck.

    I’m sure they don’t. However, they do live in a failing economy which is going to get worse and whose citizens will look for scapegoats. I wouldn’t like to be there in a year’s time.

  • #86000
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    Anonymous
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    The Spanish business world and press are getting het up about this FT article.

    There have been several indignant articles in the local press.

    Then, today, this letter to the FT, from the President of the Spanish Association of Communication Directors, published in today’s edition:

    Derogatory acronym is more than just a bad joke
    Published: September 5 2008 03:00 | Last updated: September 5 2008 03:00

    From Mr José Manuel Velasco.

    Sir, I am writing to you on behalf of the Spanish Association of Communication Directors (Dircom), to express our discomfort regarding the article that appeared last Monday, September 1, in the Lex Column.

    As the professional body representing 500 senior communicators from Spain’s private and public sectors, our complaint relates to both the content and the form of that article. The acronym coined to refer to four European Union countries (Portugal, Italy, Greece and Spain) is derogatory and demeaning. The terms used cannot be regarded as an unfortunate game of words, nor be considered as a bad joke, because they infringe on the dignity of the aforementioned countries’ citizens, politicians and business representatives.

    Similarly, the analysis on the economic environment is superficial and lacks the rigour that usually characterises your newspaper. The article (“Pigs in muck”) does not differentiate between the countries concerned, whose economies have in common their suffering from ailments of exogenous origin, but very similar to the ones of the US or the UK.

    Spain is the eighth-largest economy in the world and our country has led the longest growth period in recent times. Several Spanish companies have demonstrated their ability to adapt to the most competitive economies of the planet, such as the British economy – many of whose citizens, by the way, choose our country as the premier destination to enjoy retirement, restful holidays or lively weekends. I am sure they do not feel that, here on Spanish soil, they are “stuck in muck”.

    With the hope that the Financial Times returns to a respectful analysis of the economic actors in this country, please receive my kindest regards from Spain.

    José Manuel Velasco,
    President, Spanish Association of Communication Directors (Dircom),
    Madrid, Spain
    http://www.ft.com/cms/s/0/bfc97c88-7ae0-11dd-adbe-000077b07658.html?nclick_check=1

    For what it’s worth, I think the piece in the Lex column was correct in its short analysis of the economic problems facing Spain. Expect a deep recession. You should be able to guess what that means for house prices.

    Mark

  • #86005
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    Anonymous
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    As I know british media usually give interesting and funny titles to their articles. Perhaps spanish media has misunderstood the joke and got offensed to quickly.

  • #86009
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    Anonymous
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    The spanish media strikes bank.

    “The pound is near to bust”

    http://www.cotizalia.com/cache/2008/09/02/reino_unido_libra_britanica_recesion_radiactivo.html

    Maybe a falling pound is not too bad making UK more cost productive. If we join this to and excelent human asset I think the UK is with no doubt better that Spain.

  • #86010
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    Anonymous
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    ..strikes back (sorry)

  • #86011
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    Anonymous
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    I don’t understand why all the fuss suddenly now – or the accusations targeting the Financial Times. The term PIGS was used months ago in a Daily Telegraph article, quoting BNP Paribas:

    “BNP Paribas said the so-called “PIGS” (Portugal, Italy, Greece, and Spain) are dragging down the trade performance of the bloc……..

    …….Mr Redeker said the ‘PIGS’ quartet was now facing “collapse”, with mounting signs of stress in France as well after consumer confidence fell to the lowest level in 20 years. French property sales fell 28pc in the first quarter”.

    We even had a PIGS thread ourselves here on SPI 😀 but Sr. José Manuel Velasco obviously doesn’t look at the forum 🙁 otherwise he could have enjoyed getting upset months ago.

    The Daily Telegraph link is in Mike’s first post (thank goodness it wasn’t a Daily Mail link, eh Mike 😉 )
    http://www.spanishpropertyinsight.com/forums/viewtopic.php?t=3280&postdays=0&postorder=asc&start=0

  • #86013
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    Paul
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    It’s true that France are also in the maird, how can they be fitted into the acronym? Most of Europe is in trouble, maybe Senor Velasco and their Gov’t cannot accept that Spain is looking bankrupt but should have done something earlier about their stupid overbuilding and property corruption.

    Their Banks are in deep trouble too.

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