Reply To: “Prices haven’t dropped and buyers won’t return"


“He pointed out to me something I hadn’t picked up on. There’s a funny case of moral hazard going on in all this. The Spanish banks appear to be burying their heads in the sand with regard to their property problems. But in fact they are following a rational course of action. If the problem doesn’t explode, then they might be able to muddle through until things pick up again, and may even be able to turn a profit when they sell. But if it explodes, guess who will have to pick up the bill? Germany and France, that’s who. So it’s tails Spain wins, heads the Germans lose (bailing out Spain – that’s the bargain implicit in the Euro). Nice one”

Perhaps Blomberg article and Edward Hugh are right, I don’t know,…time will said.

But what really intrigue me is the way this very important news arrive to the light,…like a secret,…”in petit committee”…Isn’t it very strange?.

I mean, if Blomberg or Edward Hugh is not right,…what they have lost?,…a little of credibility,… in the present times not too much.

But it looks to me that the people, financial corporations, companies, governments… who really take decisions and are risking their money have another impression or perhaps a worse information.
• Moody didn’t downgrade the risk of the Spanish debt.
• The big Spaniard Banks have had a great support in the Stock market.
• With all this problems to the Euro-zone (the Spanish probably bailout) the Euro currency have been wining positions against other currencies.

Any of the facts I numbered above shouldn’t be happening if the actors who really take decisions are aware of the secret,…billions of Euros, invested in companies, in Euro governments debts, Government reserves in Euros notes,…am I the only person skeptic about secrets?.
My regards