rt21 wrote:
If ECB rates start to increase I have a strong feeling that Spain will leave euroland.


It was almost a Black Friday for Spain :

Euribor highest level ever 5,4%.
Road transport strike from Monday ,which could lead to shortages in petrol stations and supermarkets.
Stock market down 2,5%.
Oil prices up 10% on day.
Trichet saying interest rates likely to go up.
Over 60% of estate agents have closed down, since the boom ended..

All this shows the fallacy of the Euro, 23 or so different economies all looking for different economic scenarios.

Spain can do nothing to remedy the situation, its competitive position is shot to pieces due to high Euro. Many other countries must be in a worse position, the only solution will be for a break up of the Eurozone, perhaps into several groups.

Some good news could be that CB Richard Ellis has just closed its first internet auction. 11 properties were sold for a total of 3,1m euros, which was about 20% of the number put up for sale..

The sale prices were below expectations.