Re: Re: Guardian article – Spanish Property Crash


@logan wrote:

A simple way of discovering the extent of the caja’s problems is to go to their web site property sections. Most of then list large numbers of repossessed property all over the country.
I accept these are only the tip of the iceberg and represent the lower end of the market but it is a small clue to a very large problem.
Remember these banks are not heavily capitalised in the way Santander or BBVA are. They are small regional building societies who simply went out of their depth and borrowed on international markets to fund their lending. That debt requires servicing from their own resources and that’s all but dried up.
As far as I can see very little of this stock is moving even with 50% reductions and a guaranteed mortgage. So what chance has any private seller in this market got?
I am sure we are going to see some bankruptcies in the banking sector very soon.

Most of the stuff that these banks have for sale officially is crap and at overvalued prices. I don’t think they actually want to sell them which in itself is weird. I can’t understand why they even have them for sale at those prices since it just floods the markets with to much properties which hurts everyone. The real bargains gets bought up by friends of the banks etc.