This is all very true and the Spanish ecomony was far too heavily exposed to construction and everything that goes along with it so the downturn will be severe and worst of all Spain is tied into the Euro and has little control over its own economy.
I do believe Sep/Oct time will force a lot of ex-pats in the hospitality business to pull down shutters and bail out as business is way down on previous years.
But as the article says car sales fell 31% in May. Earlier this week I heard of a dealership that significantly reduced its saleforce. That said I am in the market for a new car so sounds like some good negotiating and I could get a real bargain!