Spain’s property market will suffer a triple whammy in 2015

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This topic contains 7 replies, has 6 voices, and was last updated by Profile photo of katy katy 4 years ago.

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  • #57171
    Profile photo of Anonymous
    Anonymous
    Participant

    The Spanish property market will experience a triple whammy in the year 2015.

    The first blow to Spain will come with the American economy heading for bankruptcy in the year 2015 as predicted by Peter Schiff in his book “The Real Crash – America’s coming bankruptcy, How to Save Yourself and Your Country”. The sub-prime and financial crisis of 2008 is just the warm-up and the main event will occur in 2015 when the government debt bubble (treasury bills, government bonds) finally bursts. The infusion of billions of dollars into the economy in the form of money printing and quantitative easing by the Federal Reserve is an inflation time bomb that is waiting to go off that will result in a Dollar currency collapse, the debasement of the Dollar which will have disasterous consequences for the US economy and will have knock on effects across the World affecting countries like Spain in particular. The author Jim Rickards who wrote the book “Currency Wars” says that the Federal Reserve is out to trash the Dollar.

    The second blow to Spain will be when the British economy and housing market finally collapses in the year 2015 bringing to an end the twenty year long boom that started in 1996. Bubbles need to be fed otherwise they burst and once the Bank of England brings to an end the Quantitative Easing and the funding for lending program this will result in the ponzi scheme British economy to collapse with devastating consequences for the British economy. The British have been amongst the biggest buyers of property in Spain and a collapse in the UK’s ponzi scheme economy and housing bubble will cause these buyers to disappear resulting in a sharp drop in the demand for property in Spain.

    The third blow to Spain will be when by the year 2015 the economic situation in Spain will have become so bad with unemployment reaching 50% that Spain will have no choice but to leave the Euro and adopt the Peseta resulting in an instant devaluation of the currency by at least 50%. The resulting turmoil will cause inflation to rise steeply that will be followed by sharp rises in interest rates to control the inflation. The rise in interest rates will cause a second housing crisis in Spain as many home owners will be unable to keep up with the rises in mortgage payments and will be forced to sell their homes adding more property to the market that already has millions of vacant properties up for sale which will only depress prices further.

    Raising interest rates will not be enough to control the rising inflation as a result of the devaluation of the Peseta and the Spanish government will be forced to contract the economy, reduce, squeeze the money supply to make money in the economy scarce in order to restore the purchasing power of money to reduce the rising inflation. Taking money out of the economy will result in a collapse in demand and will cause the number of bankruptcies to rise steeply and unemployment to rise sharply which will result in a further reduction in the demand for property and more people being unable to cope with servicing their mortgage payments because they have lost their jobs, forcing these people to put their properties on the market.

    This triple whammy of America’s bankruptcy, Britain’s economic and property collapse and Spains exit from the Euro and subsequent contraction of the economy to fight off rising inflation will result in absolute carnage to the Spanish property market in 2015.

  • #113770
    Profile photo of Anonymous
    Anonymous
    Participant

    phew, is that all…..

    oh well, keep smiling and carry on…..

  • #113774
    Profile photo of logan
    logan
    Participant

    “Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence.” (Helen Keller 1880 -1968).
    Jake/Bruno needs someone to help him turn his sails to the wind.

  • #113776
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    Total nonsense. Indulging Jake’s delusion for a moment, is there anyone who thinks that Spain’s path to prosperity is through the real estate market improving or foreigners buying property? Granted, foreigners buying properties will help a bit, but not much, especially since ‘bargain hunters’ often are too cheap to spend money on improvements. Getting rid of unsold properties helps banks, but it will not do much to solve Spain’s biggest problem: Unemployment.

    America’s “bankruptcy” that is the conclusion of Peter Schiff, and Jim Rickards’ view of US currency is nothing more than fantasy. Schiff and Rickards belong to a class of authors/experts in the ‘the economy is going to fail industrial complex’. They profit from spreading doom and gloom. They are good analysts, but they both are blinded by their ideology which restricts their conclusions to only those that fit their ideology, not their analysis. And Rickards last book had so few sources cited for his assertions that it was nothing more than wild speculations for those who are sexually aroused by economic disaster.

    I don’t know enough about the UK to comment about that, but given Jake’s penchant for despair, I’ll wait for others to comment about that.

    Finally, if Spain leaves the euro, the euro will collapse. It is difficult to imagine the global turmoil that this scenario will create.

  • #113777
    Profile photo of Igurisu
    Igurisu
    Participant

    Guys & Gals, don’t feed the troll. If you keep replying to his posts then he will keep posting this crap.

  • #113784
    Profile photo of Anonymous
    Anonymous
    Participant

    @igurisu wrote:

    Guys & Gals, don’t feed the troll. If you keep replying to his posts then he will keep posting this crap.

    I am not a troll. I am not deliberately trying to wind people up or provoke a reaction. I apologise to anybody who thinks I am winding them up. All I am doing is just stating what I believe is going to happen based on my in-depth knowledge of economics and the way capitalist economies work. You can make the troll accusation about anybody who has an opinion. The danger is that if anybody with an opinion is branded a troll then this forum will end up becoming like the forum at hpc which is censored and biased to suit the agenda of a few STR’s.

    That said, it is very likely that America will be in serious economic trouble in the next few years and the same can be said about Britain. It is just about certain that Spain will eventually have to leave the Euro because crippling high unemployment will force Spain to adopt a weaker currency to alleviate its chronic unemployment problem. Therefore all I am stating is what is probably obvious to many people anyway.

    This forum has been tremendously useful to me personally because the postings that I have made to this forum has helped me enormously in developing my website on the Spanish property market because the website contains much of the information that I have posted on this forum.

  • #113786
    Profile photo of logan
    logan
    Participant

    Bruno.
    There is no such thing as absolute truth. There is no such thing as inevitability. If you have any real knowledge of economics you would know that markets can turn in the blink of an eye and that it’s impossible to predict anything with the certainty you preach, particularly so far ahead

    Most of your posts and your web site are unadulterated drivel, based on your own limited assumptions. If you want people to take your seriously it’s necessary to write and think in balanced measured terms.

  • #113788
    Profile photo of katy
    katy
    Spectator

    The economy is like weather forecasting…someone gets it wrong someone gets it right. Most of it is wrong. What if the world economies never improve…………… 😛

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