[logan]

As the economic calamity in Spain deepens the government welcomes the departure of immigrant workers. However many skilled and well educated Spanish are now leaving Spain in search of employment.

http://www.ft.com/cms/s/0/f6042f74-f5b1-11e0-be8c-00144feab49a.html#axzz1b7UXp5Cp

Rumours in the City yesterday suggested Spain is secretly seeking a 20% haircut on it’s national debt. It is this type of contagion EU leaders fear the most. If Greece gets an expected 40% haircut on it’s debt you can bet other countries will demand similar help.

[Anonymous]

“Jeremiah Ekenobaye, a Nigerian immigrant who worked as a van driver and bought a flat in Parla with a mortgage but then lost his job, told the FT recently: “I am even planning to get out of Spain. Maybe Holland or the UK. But it’s difficult to make a move.””

Of course people like Mr. Ekenobaye will just dump his flat on the bank portfolio.

[Anonymous]

“Jeremiah Ekenobaye, a Nigerian immigrant who worked as a van driver and bought a flat in Parla with a mortgage but then lost his job, told the FT recently: “I am even planning to get out of Spain. Maybe Holland or the UK. But it’s difficult to make a move.””

Of course people like Mr. Ekenobaye will just dump his flat on the bank portfolio.

[Anonymous]

Not that I agree with the possible action by Mr Ekenobaye. What option has he got.

[peterhun]

@logan wrote:

As the economic calamity in Spain deepens the government welcomes the departure of immigrant workers. However many skilled and well educated Spanish are now leaving Spain in search of employment.

http://www.ft.com/cms/s/0/f6042f74-f5b1-11e0-be8c-00144feab49a.html#axzz1b7UXp5Cp

Rumours in the City yesterday suggested Spain is secretly seeking a 20% haircut on it’s national debt. It is this type of contagion EU leaders fear the most. If Greece gets an expected 40% haircut on it’s debt you can bet other countries will demand similar help.

A 20% cut in its debt and a 50% increase in the interest rate it has to pay for new borrowing. Suicidal strategy and I can’t see them trying it.

[logan]

@peterhun wrote:

A 20% cut in its debt and a 50% increase in the interest rate it has to pay for new borrowing. Suicidal strategy and I can’t see them trying it.

I agree it’s premature and the rumour did not gain legs. However with S&P’s recent downgrade and most of the credit agencies citing a negative outlook the rate Spain is paying for it’s debt will certainly rise without further measures.
What is also likely when the PP gain power in November further restructuring of the debt pile is going to be eventually on the table. Further austerity and reining back regional government spending will be another priority.

A classic example – Mazarron and the Murcian regional government have just announced they are to spend €66 million on a new water park. 😯
http://www.simplynetworking.es/news-8362-31-mazarr%C3%B3n_council_plan_to_build_waterpark_in_the_municipality.html

The PP have been very guarded about revealing their future strategy in case they frighten the electorate.
However as I see it the Spanish people are going to have to accept some unpalatable ‘Greek style’ policies in order to satisfy the markets.

[logan]

@peterhun wrote:

A 20% cut in its debt and a 50% increase in the interest rate it has to pay for new borrowing. Suicidal strategy and I can’t see them trying it.

I agree it’s premature and the rumour did not gain legs. However with S&P’s recent downgrade and most of the credit agencies citing a negative outlook the rate Spain is paying for it’s debt will certainly rise without further measures.
What is also likely when the PP gain power in November further restructuring of the debt pile is going to be eventually on the table. Further austerity and reining back regional government spending will be another priority.

A classic example – Mazarron and the Murcian regional government have just announced they are to spend €66 million on a new water park. 😯
http://www.simplynetworking.es/news-8362-31-mazarr%C3%B3n_council_plan_to_build_waterpark_in_the_municipality.html

The PP have been very guarded about revealing their future strategy in case they frighten the electorate.
However as I see it the Spanish people are going to have to accept some unpalatable ‘Greek style’ policies in order to satisfy the markets.

[katy]

They will after the election when the real state of the economy is revealed!

[katy]

They will after the election when the real state of the economy is revealed!

[Anonymous]

If local politics in Catalonia is anything to go by, it will emerge after the election that the Socialists have spent far more than they fessed up to, especially on themselves and special interest groups.

[Anonymous]

If local politics in Catalonia is anything to go by, it will emerge after the election that the Socialists have spent far more than they fessed up to, especially on themselves and special interest groups.

[Anonymous]

“Mazarron and the Murcian regional government have just announced they are to spend €66 million on a new water “

Does not surprise me to read what the Mayor says. Ofcourse he not spending his money. I am sure that he will get a kick back from the project.

[Anonymous]

“Mazarron and the Murcian regional government have just announced they are to spend €66 million on a new water “

Does not surprise me to read what the Mayor says. Ofcourse he not spending his money. I am sure that he will get a kick back from the project.

[Author]

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