Re: Re: The Banks

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Personally I think the situation is dire and I am amazed that the Spanish banking system has not come under a greater spotlight.

Pundits always keep saying that Spainish banks have been more prudent lenders. That might be the case but they have lent on properties that, when this is all over will have seen well over 50% fall in value. In addition a huge number of Spanish workers have lost their jobs.

Spanish banks may have been less exposed to the original toxic debt, but now they have a good dose of their own.

Walk up any Spanish high street and you see literally 20 or 30 banks!!! I know for El Ejido, the main street has at least 20. I counted them a few years ago. This is a huge cost base for the banks.

I think we are seeing the start of a major Euro crisis and Spain is going to be the main contributor to it.