Spanish Banks Hiding Over $70 Billion In Bad Real Estate, El Confidencial Finds

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Mon, 06/27/2011 - 08:17 | 1404995 King_of_simpletons
King_of_simpletons's picture

What's new with the banks ?

Mon, 06/27/2011 - 08:44 | 1405032 TheFourthStooge-ing
TheFourthStooge-ing's picture

Bend over, German taxpayers, here it comes again.


Mon, 06/27/2011 - 08:58 | 1405063 oh_bama
oh_bama's picture

only 70B? That is less than one day of POMO!


Mon, 06/27/2011 - 10:18 | 1405254 Ahmeexnal
Ahmeexnal's picture

Massive bust in Spain will be the catalyst for disaster:

Mon, 06/27/2011 - 08:25 | 1405001 jkruffin
jkruffin's picture

Gold 1300 soon it seems........

Mon, 06/27/2011 - 08:32 | 1405003 Yen Cross
Yen Cross's picture

 Go Jerry Maguire on me! 2T Itallion style! SP? sorry...


  Italy is 2 Trillion in debt and over 100% GDP!  Anyone want to discuss that with me?



Mon, 06/27/2011 - 08:25 | 1405007 johngaltfla
johngaltfla's picture

Thankfullyl it's contained.....

Until you look at the charts....

Mon, 06/27/2011 - 08:37 | 1405010 Widowmaker
Widowmaker's picture

Truth is the last thing one would find on a banker's job description, or a corporation's charter.

It's ALL lies.    

The only cure is 1oz silver bullets.

Mon, 06/27/2011 - 08:32 | 1405013 the not so migh...
the not so mighty maximiza's picture  ..coming soon/under construction.


Mon, 06/27/2011 - 08:36 | 1405018 The Axe
The Axe's picture

if you can always rollover you bad won't matter...until you can't!!!

Mon, 06/27/2011 - 08:42 | 1405021 Yen Cross
Yen Cross's picture

  Piigs on acid?

Mon, 06/27/2011 - 08:40 | 1405024 Jim in MN
Jim in MN's picture

You're always perfectly capitalized...if you have more guns on your side.

Bend over.

Mon, 06/27/2011 - 08:47 | 1405036 Yen Cross
Yen Cross's picture

 Jim, that was a good post.    YEN

Mon, 06/27/2011 - 08:49 | 1405034 MFL8240
MFL8240's picture

Take out country Spain and put in USA, run the same story just adjust the dollar number higher.  

Mon, 06/27/2011 - 08:50 | 1405042 johnnymustardseed
johnnymustardseed's picture

US banks hiding trillions...big deal

Mon, 06/27/2011 - 08:56 | 1405046 oogs66
oogs66's picture

did they call Germany yet for money?

Mon, 06/27/2011 - 09:01 | 1405055 White.Star.Line
White.Star.Line's picture

Fractional reserve banking is the shadow slowly creeping over all the land.

Mon, 06/27/2011 - 09:02 | 1405061 denarii
denarii's picture

this is only 5% of gdp, sounds woefully optimistic to me

Mon, 06/27/2011 - 09:07 | 1405074 lizzy36
lizzy36's picture

But no worries, Spain is not Greece, which is not Lehman, which was most certainly NOT Bear Stearn's.

One wonders which one is AIG?

Mon, 06/27/2011 - 09:04 | 1405076 Yen Cross
Yen Cross's picture

 I own this 'ghost signing' CO.   LLP.

Mon, 06/27/2011 - 09:11 | 1405083 Curtis LeMay
Curtis LeMay's picture

Not only in Espana...Italy too.

Monday, 27 June 2011

Spreads between Italian and German 10-year bonds hit the highest level since the creation of the euro, while banking shares suffered a shock plunge following market rumours of an imminent downgrade of Italy's sovereign rating.

Mon, 06/27/2011 - 09:15 | 1405090 Gandalf6900
Gandalf6900's picture


What are you talking about, here in Italy we are all swimming in gold, fancy silk robes and soft bunny fur slippers....NOT

Mon, 06/27/2011 - 09:08 | 1405084 Gandalf6900
Gandalf6900's picture


Yeppa Yeppa andale andale muchacho

Mon, 06/27/2011 - 09:15 | 1405105 Yen Cross
Yen Cross's picture

 Your honesty is (XAU).  Yen...

Mon, 06/27/2011 - 09:57 | 1405181 True.North
True.North's picture

Now if we could just cast James Woods as Miguel Blesa de la Parra...

Mon, 06/27/2011 - 10:18 | 1405237 Reptil
Reptil's picture

The spanish themselves are STILL counting real estate in Pesetas. (that'd be a huuuuuuuge number ;-)

Mon, 06/27/2011 - 11:48 | 1405579 Joshua Falken
Joshua Falken's picture

The Spanish have systematically avoided tackling their bad debt problem since 2008.

If you have a country with 46% of pre-credit crunch GDP coming from property and construction, why would anyone be surprised they have been hiding a problem (unless you are an investment bank research analyst).

The problem may be a whole lot bigger than 50 billion Euros as the collateral value of the underlying real estate is worth nothing like that now.

The banks in Spain are also responsible for valuing property and may not be marking the real value to market.

The Spanish banks are also not repossessing defaulted properties, but they are counting the delinquent and defaulted money owed as new loans.  This supports property prices and shows strong loan growth, all with tacit government approval.

There are more new homes for sale in Spain than in the USA with vast ghost towns (ciudades fantasma) finding no buyers.  see Ciudad Valdeluz and Sesena.

All the countries with historically poor fiscal management and high interest rates before joining the Euro (Greece, Portugal, Ireland, Spain and Italy) are avoiding the hangover now the cheap money party has ended.

Not one of their politicians wants to be held responsible, so they continue to kick the can down the road until the game is up, which might be quite soon.


For the future, look to the past.  See the Nikkei 225 since December 1989.

Mon, 06/27/2011 - 13:18 | 1405831 Mr Kurtz
Mr Kurtz's picture

Ole', Bitchez!

Mon, 06/27/2011 - 13:18 | 1405832 sumosamurai
sumosamurai's picture

This is news? The US has been doing this since at least 2008. Mark-to-fantasy prevails.


Mon, 06/27/2011 - 18:03 | 1406667 Feel the flow
Feel the flow's picture

I'm currently living in Mallorca, Spain and yes it's true.  Protests are becoming more and more commonplace.  20 and 30 somethings are living back home with Madre and Padre.  After Greece, Spain is next.  The Gold and Silver coin shops are experiencing record sales here.  As my local shop owner says, "Who wants their money in the bank?"  Let alone in a dying political experiement: the EURO. 

Feel The Flow:


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