Re: Re: Conference in Madrid with Spain’s head of Housing


@Chopera wrote:

. I don’t consider say 20% to be hyper-inflation, that’s just high inflation and while not desirable, is perfectly manageable. I consider hyperinflation to occur when there is a complete loss of confidence in a particular currency, and prices in that currency start doubling every month. This scenario must be avoided at all costs.

20% inflation means about 15-20% interest rate for mortgages. This rate will bankrupt about half of the families due to the mortgage payments.

The era of high houses prices has made much harder to survive interest rates more than 5%.