Spanish banks and also the FROB have now also been downgraded by Moody’s. The FROB of course being the governement backed fund that will supposedly bail out the banks — the way things are going, the FROB will need bailing.
Regarding making 50% offers near Gib, I say go for it. Ive been watching this market for 3 years and the same properties plus new are still for sale. Theres an expectation in this area that some foreigner is going to pay a fortune for a hovel of a slum property – just isnt gonna happen as theres so much available for rent.
A word on renting, the prices have fallen by half in La Linea. This place im in now was renting for 1300 euros in 2007, now 650. Up for sale at 200k now, and Im expecting rents to fall further to around 500 euros a month in 2011.