Reply To: Outlook for Spanish Banks?


When I read the article this morning my thoughts were exactly the same as Charlie’s. Where have these politicians been for the last few years ?

On the subject of chasing debts I was surprised to read an article yesterday that stated that in the USA lenders cannot chase defaulters for mortgage arrears. Homeowners can simply hand in their keys and that is that. It went on to say that this obviously encourages more defaulters as the price of houses falls.

In the UK and Spain I do not know who has been the dafter, the banks for lending the money without due care or attention, or the mortgagees who borrowed the money without giving any forethought to what would happen if the economic cycle turned. On reflection it is probably the mortgagees because the banks were canny enough to realise that they could go cap in hand to E.U. governments for taxpayer’s money to bail them out when things turned sour.