Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Why Spanish real estate must fall from between 50% and 70% › Re: Re: Why Spanish real estate must fall from between 50% and 7
Recent City of London analysis indicated that if property values in Spain fall by 50% and land values by 70%, Spanish Banks will require a capital bail out of around 80bn Euros.
The government maintains 20bn Euros will be sufficient to stabilise the system.
If Edward Hugh is right and I believe he is what then?
Spain does not have the resources on it’s own to rescue the banks to that level. They will have to receive aid from the European Stability Fund. Then watch their bond yields rise to further unsustainable heights.
No wonder the Chinese were so happy to invest in Spanish sovereign debt. Money for nothing.