Re: Re: Spain and the none performing assets


The derivatives packaged in the US and sold round the world were given triple A credit rating by Wall Street, consequently so many were fooled into investment. I agree it is unlikely to happen in this case with NPA’s. However I dislike any institution hiding/disguising losses in this way. It distorts the real picture. Air brushing out the bad bits and presenting a rosy glow actually fools no one.
Spanish banks have been publically very successful at navigating the financial storm of this recession. However I do believe the true extent of their problems has yet to be revealed. Like icebergs most of it lies underneath. The country itself continues to borrow massively on world markets without a clue of the long term consequences. A €17 billion infrastructure project is about to get under way to try and halt/disguise the unemployment figures and the true state of the economy.
I see a Greek style disaster waiting to happen.