Re: Re: How is Spain going to deal with Negative Equity?

#102519
Anonymous
Participant

There is not much difference in how countries across the world deal with negative equity, banks are global and it’s the banks which dictate a lender’s action, not individual governments.

Governments can intervene and make payments to the global banks if they wish, at a cost to the taxpayer, and they can even bail out the severely stricken banks with taxpayers money, but this has no effect on negative equity – ultimately.

Whether we like it or not, we live in free Western democracies under capitalism which is market-driven, only communist countries could directly interfere with negative equity in their states.