Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › 22 Points – Is Spain Heading into a Great Depression? › Re: Re: 22 Points – Is Spain Heading into a Great Depression?
The IMF have said that the Capital Flight from Spain reached 296 billion euros in the 12 months to June, it’s common knowledge that this is still growing and will be interesting to hear by how much in the 12 months to December. This is a staggering figure that’s been withdrawn from Spanish Banks by Corporates and Individuals because there is so much uncertainty.
Now Nouriel Roubini has said/predicted that he ‘believes Spain will lose market access by the year end and would need a huge Troika-approved bail-out that will ‘only buy them time’
None of which is conducive to safe Spanish investment for some while to come, and remember markets whether Stocks and Shares or Property Worldwide or in Spain are often manipulated or hyped to show otherwise 🙄
That story from June/July (repeated with glee by many sites at the time) has been debunked – let’s face it, if it was true then things would be a lot lot worse…
By now we hope that you’ve started to have a healthy scepticism of deposit flight from Spain, even given our last point. Why?
August figures from the Bank of Spain showed that deposits by households decreased by just 0.31 per cent.
As for corporations… they increased their desposits, by 2.31 per cent.
All of which is not to say that the situation in Spain shouldn’t worry you. Of course it should. But you are looking at the wrong metric.
Of course if you really believe this negative propaganda, (and i’ve said the same to J2) merely take a shorting position on a Spanish company over 3 months! You’re bound to make money – look the stock exchange is down today!!!