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Spanish business owner of the property website “idealista.com” blames the banks for Housing Collapse:
“When the crisis started four years ago what we saw in the United States and what we saw in the UK was a quick adjustment of the prices but in Spain prices have not fallen that quickly, the average fall in spain has been between 20 to 30 per cent when it should have been at least 50 per cent – why did this happen? it is because the banks have not been quick enough to offload all the properties that they have been hanging on their books, what they were doing was actually using those properties as collateral to get debt from the European central bank at one percent and then lend it to the public debt of greece, spain, portugal and ireland at five or six percent it was a very big business and very easy to do”.
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@Chopera: To a very extent you are right. I do believe & will always believe in ” buyer be aware “. The responsbilty falls onto the various bodies that are suppose to be the eyes & ears of society, sector etc.
In a capitalist system checks & balance’s are vital to avoid the current situation & to have a mechanism of clipping the wings. Not good enough to refer to Mr King remarks that he was not aware of this that and the other.
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Jakesuper’s post is a gross over simplification. The assessment is one sided and fails to illustrate the actual cause of the crisis.
The Spanish property calamity was caused by many factors, not just banks.
Collective greed by corrupt politicians and developers, yes banks with easy access to credit, low interest rates because of the Euro, gullible ordinary people and individual speculators who believed in free easy money and did not understand the market.A real toxic combination which has brought Spain to it’s knees and destroyed the hopes and aspirations of an entire generation.
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