The government body behind Spain’s so called ‘bad bank’, which was set up to remove negative assets from struggling financial institutions, have forecast that Spanish property prices will not begin to rise again until 2017. FROB (The Fund for the Orderly Bank Restructuring) estimate that house prices will fall for the next two years, then stagnate for two years, before starting to increase at an annual rate of 3% in 2017.
Specifically, the organisation believes that prices will fall by 2.8% in 2013 and 1.5% in 2014 before beginning to rise. They also predict that land prices will follow a similar trajectory, falling by 12.5% in 2013 and 5% in 2014, land then beginning to recover in 2016, but at a lower level than that seen by property, just 2.5% a year. Continue reading →
Individuals, banks, countries, etc, all borrowed on the future. Well, the future has arrived and the loans have to be paid back. Problem is the individuals can’t do it, so the banks can’t do it, so the countries can’t do it, and thus ensues the mess we are in. At this stage, only hard work can do it and for that we need working economies, but the stable door is being closed by the banks being required to hold more money as protection against ‘bad times’. Well, those times are now, so really they should be encouraged to do the opposite. The only way out of our predicament is through the investment of labour and capital, or we’ll be in the same mess in 10 years time. Release the funds and have 24-hour ‘work ins’ instead of strikes! Continue reading →