Spain is sliding into a full-blown economic depression

[Black Swan]

Spain tips into depression

Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade, according to a clutch of reports over recent days.

The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11pc of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero, who still says Spain's recession will be milder than elsewhere in Europe.

RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25pc, comparable to the worst chapter of the Great Depression. :-0

Spanish workers typically receive 50pc to 60pc of their former pay for eighteen months after losing their job. Then the guillotine falls. Spain's parliament has rushed through a law guaranteeing €420 a month for long-term unemployed, but this will not prevent a social crisis if the slump drags on.

Spain tips into depression - Telegraph

 

[0007]

Spain tips into depression

Spain tips into depression - Telegraph

If this has susbstance then it's deeply worrying.

 

[Black Swan]

If this has susbstance then it's deeply worrying.

There is a truly fantastic (true sense of the word) video on You Tube showing a ghost town just outside Madrid (20 miles or so). It is the ultimate text book folly. A motor bike rider goes around it for 15-20 minutes recording all the brand new buildings; industrial, residential and commerical that were built 'on spec' with the expectation that the jobs and employers/employees would follow. It's terrifying to watch, it's as though a nuetron bomb has dropped vaporising all the occupants. You see schools, car show rooms, apartment blocks, cinemas...all empty...it makes Thamsmead look like a kids lego box. I'll try and dig it out, I had it in my favourite folders of one of my lap tops...

Spain's over reliance on construction was awesome, the upside (unless you're buried in off plan/buy to let speculation) is that the fall in property values probably has another 50% to go, even the Costas auctions are full of tumbleweed, hardly anything reaching v.low reserves...

 

[Trader333]

Why is anyone surprised by this ? As you say they have had a huge over reliance on the property market and at one time were building more than Germany, France and the UK combined. I don't think thy have done themselves any favours either with the appalling attitude to those from the UK who purchased properties. There are quite a few stories of knocking half a building down because one section was on a small piece of land that had not got planning approval in the middle of nowhere or where the authorities decided to have a new road with street lights and this was billed to only foreign residents. I don't doubt that this is not the case in many places but it was enough to stop me buying Spanish property a few years ago.


Paul

 

[N Rothschild]

spain is a **** hole regardless!

 

[alan5616]

More bad news

One of their major shipping companies is in trouble as well. They've been late paying staff and creditors. No name (inside info). Their stock isn't quoted on Ibex so, no insider dealing for me or anyone else. LOL

 

[Splitlink]

Spain tips into depression

Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade, according to a clutch of reports over recent days.

The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11pc of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero, who still says Spain's recession will be milder than elsewhere in Europe.

RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25pc, comparable to the worst chapter of the Great Depression. :-0

Spanish workers typically receive 50pc to 60pc of their former pay for eighteen months after losing their job. Then the guillotine falls. Spain's parliament has rushed through a law guaranteeing €420 a month for long-term unemployed, but this will not prevent a social crisis if the slump drags on.

Spain tips into depression - Telegraph

Where did you get that opinion? Not from Zapatero and his socialists, I bet! The only honourable guy ( I did not say he was any good) was Finance Minister Solbes. He resigned in May, I think it was and, also, resigned his seat, two weeks ago.

 

[Hoggums]

Ireland will be next. The whole of the EU region will suffer as a result.

V shaped recovery my **** !

 

[N Rothschild]

BUY EUROS! not.

 

[anley]

Any one else wondering why (so far) there haven't been any blowups from the Spanish Banks. Surely they're up to their eyeballs in domestic debt tht hasn't got a chance of being repaid anytime soon, ie personal mortgages, business loans, personal credit cards, personal loans etc. Hard to make those payments when you don't have a job.

 

[ian]

There is a truly fantastic (true sense of the word) video on You Tube showing a ghost town just outside Madrid (20 miles or so). It is the ultimate text book folly. A motor bike rider goes around it for 15-20 minutes recording all the brand new buildings; industrial, residential and commerical that were built 'on spec' with the ...

.

Do you have a link, tried looking but cant see it. Thx.

 

[timsk]

One cocoon that appears to be immune from all the doom and gloom in Spain is the wonderful city of Malaga. Its preparations to become the European City of Culture in 2016 are cracking on at pace. Totally re-vamped airport, new Metro and building a whole new marina area with shops and cafes etc. Blows me away each time I go. Then again, I'm a long time fan of the city and believe that it's been overlooked and underrated for years. That will soon change . . .

 

[Technically Fundamental]

Any one else wondering why (so far) there haven't been any blowups from the Spanish Banks. Surely they're up to their eyeballs in domestic debt tht hasn't got a chance of being repaid anytime soon, ie personal mortgages, business loans, personal credit cards, personal loans etc. Hard to make those payments when you don't have a job.

Mega acquisitions. Sales of subsidiaries. Dodgy accounting. It'll all come home to roost.

Citi and JP announcements on October 15th

 

[counter_violent]

Don't worry about the state of Spain, Atilla will be along shortly to talk the job up
:clap:

 

[N Rothschild]

Don't worry about the state of Spain, Atilla will be along shortly to talk the job up
:clap:

he probably owns property there to

 

[Splitlink]

Any one else wondering why (so far) there haven't been any blowups from the Spanish Banks. Surely they're up to their eyeballs in domestic debt tht hasn't got a chance of being repaid anytime soon, ie personal mortgages, business loans, personal credit cards, personal loans etc. Hard to make those payments when you don't have a job.

As someone who lives out here I haven't heard a great deal wrong with the banks. Part of the reason was a couple of cases involving, about 25-30 years , someone called Ruiz-Mateus and his Rumasa Group. After that there was Conde. Ruiz Mateus was not quite as bad as Madoff, but he started buying up all the smaller banks and was paying high interest rates out of the the new deposits. The socialists nationalised that group but Brussels made them give a lot back. Conde was about 12 years ago and he was up to all sorts of tricks as president of one of the big high street banks, here, and went to jail.

Anyway, this seems to have caused the Bank of Spain to to watch the banks more closely and, for that reason, this latest crisis has not affected our banks quite so much.

I don't know everything, though, and Lord knows what could come out from behind the woodwork!

 

[Paul71]

Spain tips into depression

Spain is sliding into a full-blown economic depression with unemployment approaching levels not seen since the Second Republic of the 1930s and little chance of recovery until well into the next decade, according to a clutch of reports over recent days.

The Madrid research group RR de Acuña & Asociados said the collapse of Spain's building industry will cause the economy to contract for the next three years, with a peak to trough loss of over 11pc of GDP. The grim forecast is starkly at odds with claims by premier Jose Luis Zapatero, who still says Spain's recession will be milder than elsewhere in Europe.

RR de Acuña said the overhang of unsold properties on the market, or still being built, has reached 1,623,000 . This dwarfs annual demand of 218,000, and will take six or seven years to clear. The group said Spain's unemployment will peak at around 25pc, comparable to the worst chapter of the Great Depression. :-0

Spanish workers typically receive 50pc to 60pc of their former pay for eighteen months after losing their job. Then the guillotine falls. Spain's parliament has rushed through a law guaranteeing €420 a month for long-term unemployed, but this will not prevent a social crisis if the slump drags on.

Spain tips into depression - Telegraph

Ah yes, i forgot about this one. Of course Spain is going down the pan faster than a greasy turd, look at the state of the place. There is more work in a Mexican than your average Spaniard, working on building sites with flip-flops on and rickety scaffolding. Everyone walking around like they are full of tranquilisers. No go in them, a good kick up the behind is what is needed. I know Split is an expat, but even he has lost it a bit since going out there, look at the state of his trading. I think a good lengthy and deep depression is what Spain needs if you ask me. That'll shake a bit of life into the bull murdering, moustache wearing, maracca monkeys.



Yours.

 

[Splitlink]

One cocoon that appears to be immune from all the doom and gloom in Spain is the wonderful city of Malaga. Its preparations to become the European City of Culture in 2016 are cracking on at pace. Totally re-vamped airport, new Metro and building a whole new marina area with shops and cafes etc. Blows me away each time I go. Then again, I'm a long time fan of the city and believe that it's been overlooked and underrated for years. That will soon change . . .

Catalunya and the Basques are paying for all that, Tim. Why do you think they want separation from Spain?
Barcelona has only just got the AVE, Madrid to Barcelona, years after the line was built between Madrid and Sevilla. Now, at long last, we are getting a high speed connection with Paris. The rest of Spain cannot function without Basque and Catalan taxes.

 

[Splitlink]

Ah yes, i forgot about this one. Of course Spain is going down the pan faster than a greasy turd, look at the state of the place. There is more work in a Mexican than your average Spaniard, working on building sites with flip-flops on and rickety scaffolding. Everyone walking around like they are full of tranquilisers. No go in them, a good kick up the behind is what is needed. I know Split is an expat, but even he has lost it a bit since going out there, look at the state of his trading. I think a good lengthy and deep depression is what Spain needs if you ask me. That'll shake a bit of life into the bull murdering, moustache wearing, maracca monkeys.

Yours.

:clap::clap::clap:

 

[Technically Fundamental]

I remember reading somewhere at the beginning of all this mess that Spanish banks were the strongest in Europe. Just look at what Santander group snatched up out of the bargain basement this year with their fat wallets. Something to do with regulations as Split says. Can't see how they won't take a big hit though. It's all international innit.