October 7, 2008 at 7:15 am #54383
Some of the USA news channels and websites are saying that the unfolding property collapse in spain is set to have a dramatic effect on the Spanish economy, much more so than has been recognised thus far. On TV they were saying that the extent of the issues will have a devastating effect on the Spanish economy that will eclipse what has happened in the US. Due to the property bubble inflating so much (Spain was the biggest builder in europe) Spain has more to lose than anyone else in europe.
I don’t know whether this is true or just speculation, but clearly they feel that there will be a heavy price to pay after the excesses of the last 10 years. Many banks are said to have lent MUCH more cash than they had as deposits, and many of these loans are to developers/individuals who have assets worth considerably less than the money they borrowed.
October 7, 2008 at 8:12 am #86716
Well if they were not in trouble then they will now.
Just one rumour now will possibly take most Banks out even the better ones.
Seems there maybe some big boys starting rumours so the price dives and they bag a bargain.
There will be some that are making mega money out of this mess.
Just a thought 😆
Just Frank 8)
October 7, 2008 at 9:39 am #86717
“issues will have a devastating effect on the Spanish economy that will eclipse what has happened in the US.”
This was/is/will be 100% certain. Spain has a weak economy based on construction sector.
USA has a real economy and will suffer teribly in the next years.
Spain will be lucky if it can stay united (Catalonia might prefer independence instead of being dragged into Depression by “tourist” provinces).
October 7, 2008 at 11:54 am #86725
The Icelandic Bank Landbanskii have gone into receivership today and online investors cannot access their money as the system is closed. Apparently it affects 300,000 UK investors, and whilst ultimately they should be paid out most if not all their savings in time, it begs the question ‘which Bank is it safe to deposit money?’ Iceland is pretty much Bankrupt, who’s next?
Personally I would be nervous of any Spanish Bank as Spain is widely expected to be the next big economy in recession, and all the facts regarding their involvement with construction haven’t been revealed yet.
As far as the UK, the HSBC appear to be the strongest as their assets are larger than their debts and their share price holds up well.
October 7, 2008 at 8:58 pm #86732
October 7, 2008 at 10:12 pm #86734
HSBC has been in Spain since 1982 wen it opened a branch in Madrid, it also operates in Barcelona.
October 8, 2008 at 4:52 pm #86754
Ive really missed the doom and gloom of this site.
October 9, 2008 at 7:13 am #86782
SPI’s other name is The Reality Show.
There’s plenty of sand on the beach if you want to stick your head in it. 😉
October 9, 2008 at 7:38 am #86783
hope it’s not like the other reality shows that go over the top with everything
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