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

#102832
Anonymous
Participant

Katy,

Banks back in those days were actually doing their jobs and would not loan people amounts of money without stress testing to the limit even though you had a job in those days you were not guaranteed a mortgage – if this had happened and Banks acted prudently along with governments, there might not be the mess there is now. Property booms and busts are cyclical and apparently have a life span of 7 years – but this time it was more than a property crash it was a world wide crash.