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


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.