Re: Re: Spain’s Government & the Caja’s


However it pans out, its not going to be good for the property market. Im guessing they will use the money to try and sell the repos they have, by offering more 100% mortgages. They have to offload these properties, but to do that, they need to write them down and they cant write them down until they get these funds, else they will be insolvent. So quite probably the bailout will coincide with drops in prices of the banks properties. They will then use the bailout capital to offer mortgages on those properties.

Well… thats my take on it.