Re: Re: Press articles about the Spanish property situation

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@flosmichael wrote:

Then, who lent him €234,000 in the first place? And why?

He was lent the money by a person who’s job/income depended on lending the money, regardless of whether it was going to be paid back and regardless of whether the property was really going to be worth that amount in a few years time.

@flosmichael wrote:

How is he going to repay the current about €130,000 debt, without even having the apartment?

He won’t.

@flosmichael wrote:

It just shows that we are in the initial phases of the crisis.

The USA solution was to allow market to de3cide on the prices of undesirable apartment/houses and they took a 90% price hit before they generated some interest. Are Spanish banks ever going to allow this for the million apartments that not many want?

Only if someone else is going to pick up the bill.